Hipmikindo Appreciates Corporate CSR for SME Development.

JAKARTA - The Association of Indonesian Micro and Small Business Entrepreneurs (HIPMIKINDO) appreciates large corporations that allocate funds for corporate social responsibility (CSR) to support the development of the micro, small and medium enterprises (MSME) sector and help provide solutions to the problems faced by the industry. According to HIPMIKINDO's Chairman, Syahnan Phalipi, there are five issues that MSME entrepreneurs in Indonesia face that can be assisted through CSR activities, including funding, marketing, human resources, financial management, and digital literacy.

"If corporate social programs can provide energy to small and medium-sized businesses, then we as an association can work with companies to improve the quality of human resources, digital literacy, marketing, finance, intellectual property, and licensing. Because many MSMEs also face licensing issues," he said when contacted in Jakarta.

Syahnan added that CSR programs can also take the form of help desks, where large companies help facilitate micro-enterprises in obtaining permits and legalities. Of course, the form of activities can be adjusted to the company's own business field,

"For example, besides help desks, CSR of companies can also take the form of investment funding such as crowd funding and also banking literacy. For household industries that operate in the food and beverage sector, companies can create kitchens for those who meet certification standards such as cleanliness, water and air flow, which require significant costs to build."

Syahnan said that sustainable and continuous programs will create high attachment and empathy.

"Imagine if there are large corporations willing to fund businesses in various remote areas, it would certainly be good for our nation."

Similarly, the President Director of PT Phapros Tbk, Hadi Kardoko, stated that corporations have moral and social responsibilities to provide added value to communities and stakeholders. One of the main focuses of various CSR programs is to empower community-based and regional economies.

In 2021, Phapros has distributed partnership funds four times to small and medium-sized enterprises in West Java, Central Java, East Java, and some outside Java. Their fields of business are quite diverse, ranging from culinary, grocery stores, workshops, clothing, printing, livestock, fisheries to health clinics.

In addition, Hadi added that, together with UMKM partners in Semarang, Phapros conducted training on planting indigofera plants, which are used as natural dyes for making batik. The company also initiated the planting of 1000 indigofera seeds that utilize unused land belonging to the partners so that the harvest can later be processed into natural batik dye paste.

"So, our CSR focus is from upstream to downstream so that our fostered UMKM can truly benefit economically and in terms of literacy as part of our mentoring."

Phapros' total distribution to UMKM in 2021 amounted to 3.6 billion rupiah, with a focus on partnership in promotion training, mentoring and support, as well as marketing support through local and national exhibitions.

"Throughout 2021, we have had 212 partners spread across several regions in Indonesia," he concluded.