Encouraging MSMEs to Upgrade, Pertamina Pinky Movement Prepares Funding for MSMEs
Jakarta, November 23, 2020 - PT Pertamina (Persero) until mid-November 2020 has distributed funding worth IDR 30 billion in the Pinky Movement program for fostered Micro, Small, and Medium Enterprises (MSMEs) partners. The program, which will last until 2023, aims to create highly competitive, tough, and independent MSMEs.
Heppy Wulansari, Acting Vice President of Corporate Communication of Pertamina, said that Pertamina as a state-owned enterprise has a partnership program to increase the ability of small businesses to become resilient and independent while providing multiple impacts on improving people's welfare.
"During the Covid-19 pandemic, when MSME businesses experienced a setback, Pertamina made various efforts so that the fostered MSMEs could survive during the pandemic to be able to produce Pertamina's Fostered MSMEs that were highly competitive, resilient, and independent," said Heppy.
In the conditions of the Covid-19 pandemic, there are fostered partners whom their businesses are affected. However, many MSMEs partners have been fostered by Pertamina, who get double profits during the pandemic. Many MSMEs are adaptive to pandemic conditions, some of which have businesses engaged in the manufacture of instant herbal drinks and the craft industry or convection fabrics that have switched to producing masks, hand sanitizers, PPE, and herbal drinks.
"For these adaptive MSMEs, sales of their products have increased along with the increase in demand during the pandemic. Many people are looking for herbal drinks to increase body immunity as well as cloth masks and PPE to prevent the Covid-19 virus, "said Heppy.
Pinky Movement is a business capital loan program, namely to MSME LPG outlets to develop business by selling non-subsidized LPG. MSMEs could also use subsidized LPG who wish to switch to using non-subsidized LPG or culinary MSMEs who wish to develop their business by utilizing non-subsidized LPG.
The Pinky Movement program has targeted at least 2,000 outlets and 100 small businesses using subsidized LPG.
According to Heppy, this program is part of corporate social investment, known as Creating Shared Value.
"Pertamina offers low-cost loan financing to MSMEs that have LPG sales or other businesses in the culinary sector and intend to expand their business by utilizing non-subsidized LPG," said Heppy.
In addition to providing a maximum capital of IDR 200 million per fostered MSME partner, Pertamina also guides the assisted MSMEs.
Arya Dwi Paramita, Vice President of CSR and SMEPP Pertamina, said that the roadmap for fostered partners starts from the traditional conditions of MSMEs, Go Modern, Go Digital, Go Online, to Go Global. "We also have eight excellent programs for UMKM to graduate," said Arya.
The eight excellent programs are Pertamina UMKM Academy; certification and licensing; display of MSME products at airports, hotel lobbies, and state-owned Pertamina houses; E-learning; MSME publications; sales of MSMEs through e-commerce; Pertamina SME 1000 Catalog, and Exhibition / virtual exhibition.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif provides support for Pertamina's partnership program targeting MSMEs. However, he reminded the program implemented must be followed by socialization and an intensive approach with MSMEs. "We certainly support a good program. The important thing is its implementation," said Arifin.
Agent of Change
Risna Resnawaty, CSR and Community Development expert at Universitas Padjajaran, said that the Pinky Movement is not just a modification of the partnership program. There is education and awareness for the public about subsidized gas fuel so that its distribution is right on target. The program aims to change behavior so that people do not abuse government subsidies.
"Apart from getting assistance, MSMEs are also encouraged as "agents of change" to encourage the wider community to use natural gas that suits their conditions," she said.
If seen from the amount of assistance and coaching and mentoring carried out by the company, it will certainly help MSMEs develop their business and breathe again. But of course, the challenges are quite challenging, especially amid a pandemic when sales figures are declining. For some MSMEs, using gas fuel that is not subsidized can be a new burden. Especially at this time, everyone is minimizing costs.
"Funding for capital will be beneficial, but to achieve this movement requires hard work because it is feared that MSMEs prioritize profit rather than holding on to commitments and values which are one of the goals of the Pinky Movement," said Risna.
According to her, the situation during this pandemic is quite a challenge for all business sectors. The assistance of the Pinky Movement provides new hope, especially for MSMEs, which had a shortage of capital because their capital was used up during the lockdown.
"To effectively use funds, companies need to refresh their financial management skills, production to marketing. So that MSMEs have new responsibilities and enthusiasm, "said Risna.**