Pertamina's Effective Stance to Revive MSEs during a Pandemic

Jakarta, March 27, 2021 - The Covid-19 virus outbreak has occurred for more than a year and has become a pandemic for almost all countries in the world. This condition also has an impact on various business sectors. It includes micro and small enterprise (MSE) actors. PT Pertamina (Persero), through the Partnership Program as part of the SOEs, invites MSEs to rise and be adaptive to the pandemic condition.

Pertamina does not remain silent, seeing the business its fostered partners are carrying out being affected by the pandemic. Various schemes and program formulations have been systematically compiled. Then it is directly applied to the fostered partners, either directly, such as assisting by absorbing MSE products. As well as an indirect way, namely by providing knowledge, mentoring, and training to be adaptive.

Senior Vice President of Corporate Communications & Investor Relations of Pertamina, Agus Suprijanto, explained that at the beginning of the pandemic, Pertamina had assisted with a value of more than IDR 3 billion. "This support is manifested in the form of more than 10,000 products of support in the form of multivitamins and herbal products, honey, soap, hand sanitizers, disinfectants, masks, etc., which can support efforts to prevent Covid-19," he said.

Not only the Partnership Program, but Pertamina also involved Rumah BUMN to take part in the Covid-19 adaptation process. The number of partners under RB Pertamina is quite large, reaching more than 9 thousand MSEs spread across 30 RB Pertamina. "There are about 420 RB partner MSEs who are adaptive from the Covid-19 outbreak with a value of more than IDR 14 billion. This number continues to grow," he added.

Agus added that Pertamina's other roles for MSEs amid the pandemic were manifested in various programs. Like digital training. This online training was increasingly carried out during the pandemic. Both are held regularly at each RB's regional level, and training held by Pertamina's Head Office. "During 2020, Pertamina has held more than 200 online training attended by 11,000 MSEs fostered by Pertamina," said Agus.

This digital coaching is not only manifested in the form of webinars or material presentations. Some of them are also filled with practices in digital marketing. The goal is to make MSEs more familiar with digital transactions through the eCommerce market. "Because, during the pandemic period, the direct MSEs product exhibition activities were not possible, so there must be a replacement platform as a storefront for these MSEs products," he said.

Pertamina also provides a virtual exhibition platform like the one held last September 2020, namely Pertamina SMEXPO. This event has also become one of Pertamina's mainstay programs in fostering MSEs during the Covid-19 pandemic. Even though it was held online, this virtual exhibition managed to get visitors from 38 countries. It was awarded the MURI Record as the Virtual Exhibition with the Most Choice of Products in Indonesia, namely 1,780 products from 100 fostered partners.

Not long ago, in November 2020, Pertamina UMK Academy 2020: Fast Track was held. This program, which 290 MSEs attended, was held to increase the number of MSEs to graduate to remain productive and survive during a pandemic. "Of these, as many as 162 MSEs passed and graduated because they were deemed to have met one of the MSEs graduation criteria," said Agus.

Namely by meeting the parameters of the development of production and marketing of MSMEs with the criteria for increasing the number of employees, increasing the value of loans, increasing production capacity, increasing turnover, involving the surrounding community to produce products, marketing products outside the city/country, obtaining national/international certificates.

Various media, continued Agus, have been used by Pertamina to approach its fostered partners. "Pertamina has facilitated the creation of a Foster Partner Whatsapp Group. Even though it seems simple, this method is quite effective in communicating all Pertamina programs related to MSE development," he explained.

Besides that, there is also the Pinky Movement program. Namely, in the form of a CSV (Creating Shared Value) program that targets MSEs to upgrade through access to capital and coaching for small businesses and Bright Gas outlets. A financing program for LPG and MSEs outlets aims to encourage the conversion of subsidized LPG and make it easier for the public to access non-subsidized LPG products. Where the distribution target for 2000 MSEs LPG NPSO Outlets and 100 Culinary MSEs.

All of the programs and coaching prepared by Pertamina during this pandemic have many big goals, including restoring the enthusiasm of doing business with its fostered partners. Therefore, it contributes to the welfare of the MSE owners themselves and the employees and their families behind them. Consequently, it becomes one of the implementations of the 8th goal of SDGs, namely providing work and supporting economic growth.

Apart from implementing SDGs, Pertamina also strives to implement ESG, especially in the social sector. ESG or Environmental, Social & Governance (ESG) Management is a company step in running its business that focuses on long-term business sustainability. In this way, Pertamina believes that it can continuously generate economic benefits in the community following environmental and social responsibilities.

According to Agus, through this Partnership Program, Pertamina always wants to provide energy that drives the economy--energy that becomes fuel and energy that generates sustainable growth. "Pertamina will support Indonesian MSEs to be more independent with the intensive assistance we provide so that MSEs can upgrade," he concluded.**

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