The economy has been one of the hardest hit sectors during the COVID-19 pandemic. This condition is also felt by the Micro, Small and Medium Enterprises (UMKM) group in the Special Region of Yogyakarta (DIY). In the Special Region of Yogyakarta (DIY), 59 percent of MSMEs experienced the direct impact of the Corona virus pandemic. Responding to this condition, the DIY Cooperatives and SMEs Service through the SiBakul Jogja (e-gov) program wants to help SMEs due to the impact of the pandemic. In SiBakul Jogja, for the Markethub service (marketplace) and also for the free shipping program. This research has two objectives. The first objective is to find out the role of E-Government in raising SMEs in DIY during the Covid-19 pandemic. And second, knowing the inhibiting factors for the implementation of SiBakul Jogja in improving the performance of MSEs in DIY. While the research method used is descriptive qualitative research method. The results of this study conclude, the role of E-Government through SiBakul Jogja which includes markethub services and free postage programs has helped SMEs. Through markethub, SMEs can market their products online. The free shipping program is also a magnet for shoppers selling or shopping through SiBakul Jogja. The free shipping budget which always increases every year shows that the program has received a positive response both for consumers and SMEs who are members of the SiBakul Jogja markethub.Ekonomi menjadi salah satu sektor yang terpukul di masa pandemi covid-19. Kondisi ini juga dirasakan kelompok Usaha Mikro, Kecil dan Menengah (UMKM) di Daerah Istimewa Yogyakarta (DIY). Di Daerah Istimewa Yogyakarta (DIY), 59 persen UMKM mengalami langsung dampak dari pandemi virus Corona. Merespon kondisi ini, Dinas Koperasi dan UKM DIY melalui program SiBakul Jogja (e-gov) ingin membantu UKM akibat dampak pandemi. Dalam SiBakul Jogja ini terhadap layanan Markethub (marketplace) dan juga terhadap program gratis ongkos kirim. Dalam penelitian ini memiliki dua tujuan. Tujuan pertama adalah mengetahui peran E-Government dalam membangkitkan UKM di DIY di masa pandemi Covid-19. Dan kedua, mengetahui faktor penghambat implementasi SiBakul Jogja dalam meningkatkan kinerja UMK di DIY. Sedangkan metode penelitian yang digunakan adalah metode penelitian deskriptif kualitatif. Hasil penelitian ini menyimpulkan, peran E-Government melalui SiBakul Jogja yang didalamnya terdapat layanan markethub dan program gratis ongkir telah membantu UKM. Melalui markethub, pelaku UKM dapat memasarkan produknya secara online. Program gratis ongkir juga menjadi magnet bagi pembeli melarisi atau berbelanja melalui SiBakul Jogja. Anggaran gratis ongkir yang selalu meningkat setiap tahun menunjukkan bahwa program tersebut mendapat respon positif baik bagi konsumen maupun pelaku UKM yang tergabung dalam markethub SiBakul Jogja