The Minister of Tourism and Creative Economy Appreciates Pertamina Business Incubation Program that Produces World-Class MSMEs

Jakarta, February 17, 2021 – The Minister of Tourism and Creative Economy (Menparekraf) of the Republic of Indonesia, Sandiago Salahuddin Uno, appreciates the Pertamina Business Incubation (Inkubasi Bisnis) Program to produce World-Class Micro, Small, and Medium Enterprises (MSMEs). Previously, Pertamina's fostered partners had Go Global and market its top products both domestically and in export, which can compete internationally.

In the Business Incubation Program, Pertamina selected 53 chosen MSMEs, which were selected from more than 8.000 MSMEs that are registered in 30 Rumah BUMN Pertamina spread across Indonesia. For four months, the participants are given experience and new knowledge to develop their business, starting from business knowledge, product design, branding, digital marketing, personal branding, and entrepreneur leadership to monitor its business development.

The Minister of Tourism and Creative Economy, Sandiaga Uno, said that from these MSMEs will be found an upgraded entrepreneur. From micro to small, to medium to becoming a big company and go global like Pertamina.

During the business incubation period from October 2020 to February 2021, the result can be seen. The total sales increase to almost IDR 2 Billion. It is a massive achievement amidst the pandemic. In four months, they can produce 82 percent better branding and packaging. Therefore it increases the sales of MSME players.

"Thank you to Pertamina whom had carried out Rumah BUMN Pertamina, the achievement of master class incubation, a successful journey of the pioneer," said Sandi during the Anugerah Prestasi Inkubasi Bisnis 2021, held virtually on Tuesday (16/2).

Sandi added that the industry and creative economy opens up a vast job opportunity, which has reached 20 million Indonesian people relying on the creative economy. If added by tourism of 14 million, it totals up to 34 million.

"Thank God Pertamina has institutionalized model support system and this ecosystem, which we hope can accelerate the development of small business. Use the experience of incubation as a source of optimism, as optimism is a magnet for success. To rise is not easy, winning against Covid, do not forget to adhere to health protocol. Together, we can defeat this Covid pandemic," added Sandi.

Similarly, President Director of Pertamina, Nicke Widyawati, agrees that MSMEs have become the national economy's backbone. It absorbs at least 95 percent of Indonesia's workers, 56 percent of the total investment, and 61 percent of national GDP contribution.

"Because of the importance of these MSMEs, Pertamina as SOE contributes to giving assistance and coaching until their business develop and upgrade," said Nicke.

Pertamina's support, added Nicke, is a part of the company's Social and Environmental Responsibility in line with the sustainable development goal number 8, which is to provide jobs and supports economic development.

Nicke added, Pertamina is proud of MSMEs achievement and can finish the program well. The participants of business incubation RB Pertamina have had an increase in sales of up to 44 percent, increased workers of up to 18,5 percent, a change in marketing towards digital, and a change of branding to become more modern.

Seeing a vast impact, Nicke hopes that a similar program can be run and replicated in other places, not just in Pertamina. Therefore, more MSMEs in Indonesia can upgrade.

"Pertamina fully supports the government step to create coaching program for MSMEs to upgrade in the future. Pertamina hopes from this event, Indonesia's MSMEs can maintain its existence and become a moving force for Indonesia's economy," said Nicke.**