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Government Strengthens MSME Ecosystem, Private Sector Becomes Key Growth Partner

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By: Muhammad Arif)

Collaboration between the government and the private sector has increasingly become a key element in driving national economic growth, particularly through the empowerment of micro, small, and medium enterprises (MSMEs). In recent years, various initiatives involving retail companies, financial institutions, and the coffee industry have demonstrated that strengthening the MSME ecosystem no longer depends solely on government policies but also on the active contributions of the business sector.

The inauguration of Alfamart’s Warehouse Center in Palangka Raya, the economic forum hosted by bank bjb, and the launch of Starbucks Indonesia’s KRING Program are concrete examples of how the private sector plays a strategic role in strengthening supply chains, enhancing business capacity, and expanding market access for MSMEs across regions.

Alfamart Regional Corporate Communication Manager, Budi Santoso, stated that the newly inaugurated Warehouse Center in Palangka Raya will serve as a vital distribution hub ensuring stable stock availability and high-quality products across its store network. The company has also successfully curated products from four local MSMEs to be marketed in 90 Alfamart outlets throughout Palangka Raya. This program is seen as a tangible effort to empower the local economy by providing MSME players with market access while also improving their production capacity and product quality.

Meanwhile, Head of MSME Division at bank bjb, Ayi Subarna, emphasized that private sector participation in regional economic activities is essential to fostering inclusive growth. The Economics 360° Roundtable Discussions held at Gedung Sate in Bandung served as a collaborative space where stakeholders could formulate strategies to accelerate West Java’s economic development.

Through this initiative, bank bjb reaffirmed its commitment to promoting sustainable economic growth and strengthening the MSME sector as the backbone of the regional economy. The bank will continue to expand MSME capacity through incubation programs, training, digitalization, and market access expansion—positioning West Java as one of the engines driving national economic growth toward Indonesia Emas 2045.

COO of PT Sari Coffee Indonesia (Starbucks Indonesia), Liryawati, noted that coffee is a medium that connects people, and those relationships begin with the individuals who serve it every day. Through the “Growing and Upscaling MSMEs” (KRING) Program, Starbucks Indonesia, in collaboration with the Jakarta Provincial Government and the Indonesian Technology Innovation Foundation (INOTEK), has provided business management training, hygiene standards, sustainable packaging practices, QRIS integration, and micro-financing opportunities to 100 coffee MSME players in Jakarta. The program is designed to help coffee MSMEs transition from the informal sector into the formal economy through digital adoption and improved service quality.

The KRING Program illustrates how collaboration between the private sector and the government can produce broad socio-economic impact. Weekly training, one-on-one mentoring by INOTEK, and the provision of business equipment packages serve as comprehensive steps to enhance the professionalism of coffee MSME operators. Success in this field not only depends on flavor but also on service quality, cleanliness, and the ability to utilize digital payment technologies. As a result, this program not only enhances MSME competitiveness but also broadens economic inclusion through digitalization.

Private sector involvement in MSME empowerment also strengthens the national supply chain. With Alfamart’s Warehouse Center, the distribution of goods—especially in Central Kalimantan—becomes more efficient, ultimately reducing logistics costs and improving product accessibility for communities. On the other hand, bank bjb’s strengthened MSME financing provides a solid financial foundation for entrepreneurs to expand their capacity and improve product quality. The KRING Program introduces innovations and sustainability standards that can increase added value within Indonesia’s coffee sector.

In the context of regional economic development, these three initiatives reflect a paradigm shift in MSME empowerment. Previously, MSME players largely relied on government policies; now, collaboration with the private sector has created a more dynamic and adaptive ecosystem. The private sector acts not only as a market provider but also as a facilitator of capacity building, a business mentor, and a provider of access to technology.

The presence of the private sector in regional MSME empowerment programs offers strategic support in accelerating grassroots economic growth. Alfamart’s investment in Palangka Raya, bank bjb’s support for West Java’s economic forum, and Starbucks Indonesia’s collaboration with the Jakarta Provincial Government demonstrate that multi-stakeholder synergy can deliver direct benefits to the public. MSME actors now have broader opportunities to grow their businesses through access to modern markets, financing, training, and digitalization.

The strengthening role of the private sector in MSME empowerment shows that national economic development is moving toward a more inclusive partnership model. Integration among businesses, government, and local communities forms a critical foundation for creating equitable and sustainable growth. With various ongoing programs and initiatives, the private sector has proven its strategic role in reinforcing MSMEs as drivers of the national economy. Moving forward, MSME empowerment will become more focused and significantly contribute to achieving Indonesia’s vision of becoming a high-income nation by 2045.

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