August 29, 2023

The Social and Environmental Contributions of PT Phapros Tbk in the First Semester of 2023 Focus on Combating Stunting and Supporting Micro, Small, and Medium Enterprises (MSMEs).

JAKARTA, August 29, 2023 – PT Phapros Tbk, a part of the state-owned pharmaceutical Holding, remains fully committed to empowering Micro, Small, and Medium Enterprises (MSMEs) through its social responsibility programs in the first semester of 2023. A series of initiatives directly impacting the welfare of the community and the environment have also been Phapros' commitment during the first half of the past year. According to CEO Hadi Kardoko, the first half of 2023 serves as evidence of the company's dedication to promoting sustainable practices through community development-based programs.

"We empower MSMEs, the majority of which are located in Central Java and surrounding areas, by allocating nearly three billion Indonesian Rupiah annually to support our business partners. These MSMEs come from various sectors. We aim to boost local economic growth and business self-reliance among micro-entrepreneurs, enabling them to enhance their competitiveness," he said in Jakarta (28/8).

Local economies, Hadi added, are a driving force for the national economy. The growth of MSMEs in various regions is a potent lever for Indonesia's GDP growth.

"That's why the majority of our social activities are geared towards empowering MSMEs. In addition to providing partnership funding, Phapros also contributes by offering periodic training to partners and involving them in various exhibitions. This aims to help micro-businesses grow into globally competitive enterprises, targeting not only the domestic but also the global market."

On the other hand, still through its social responsibility program, Phapros is not only committed to the growth of Micro-entrepreneurs but also committed to reducing stunting rates in Indonesia through collaboration with several Community Health Centers in Semarang City. Phapros initiated a 90-day program involving nutritious food interventions, collaborating with Healthcare Professionals, including training on healthy snack production for Posyandu cadres in several Community Health Centers that directly interact with the public.

Member of the Indonesian House of Representatives Commission VI, Amin Ak, stated that reducing stunting rates is not solely the responsibility of the government but also of the private sector and industries, particularly through the CSR program.

"The government should encourage the private sector and industries to participate in reducing stunting through incentives, including fiscal incentives or tax relief," he said.

Amin also appreciates the proactive steps taken by state-owned enterprises in strengthening funding for locally-based MSMEs. In the era of digitization, digitalization can accelerate the growth of MSMEs, but there are also challenges to growing in the current digital age.

"First, many MSMEs are still not digitally literate, making it difficult for them to use features on various platforms. Second, many MSMEs face difficulties in accessing the internet, which hampers the digitalization process of MSMEs."

Data from the Ministry of Cooperatives and SMEs (Kemenkop UKM) indicates that 63 percent of MSME operators struggle to work from home due to a lack of internet access. The third obstacle is that the Covid-19 pandemic has left millions of MSMEs in a vulnerable state, making it difficult for them to obtain the necessary capital. Data from Bank BRI indicates that there are currently 57 million MSME operators.

"State-owned companies and their subsidiaries need to assist in accelerating the digitalization of MSMEs through CSR activities, and state-owned holding companies that proactively strengthen financial services deserve appreciation," he concluded.