Abstract

The problem of waste management has become a concern for almost all countries, including Indonesia. In addition, on the other hand, Indonesia also still needs strengthening in the direction of the MSME sector. Therefore, the Ministry of National Development Planning/Bappenas, through the Directorate of SME and Cooperative Development took the initiative to establish a low-carbon economic stimulus program aimed at the MSME sector to improve waste management and restore environmental damage in Indonesia as well as improve the welfare of MSME. This study aims to formulate an ideal model in providing low-carbon economic stimulus to MSME to create sustainable economic development using a secondary data approach. This study found that the low-carbon economic stimulus can be a concrete and solution step from the government as a credit risk management program in providing financing in creating MSME management based on sustainable development in waste management provided that stakeholders can maintain coordination and seriousness carrying out their roles and responsibilities.

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