Program Kemitraan - Fostering Micro Small Enterprises in Makassar Indonesia: An Exploration of the State-Owned Enterprise Partnership Program

Abstract

This study investigates the Program Kemitraan dan Bina Lingkungan, the Indonesian Government’s state-owned enterprise (SOE) partnership program (PP) and its social and economic impacts for its beneficiaries and their communities. The SOEs consider the PP as part of their SOE corporate social responsibility and its practices have evolved over time. The PP is grounded in the Indonesian cultural principle of “gotong royong” (helping one another). The program supervisors see its objective as supporting MiSEs to become strong, skilful and bankable. The study was conducted in Makassar, South Sulawesi, Indonesia and the primary subjects of the study were program beneficiaries using qualitative case study research methodology. The research had elements of a program evaluation therefore functional analysis and realistic evaluation was used. The study went beyond program evaluation to explore the changes to beneficiaries’ social and economic wellbeing, their acquisition of entrepreneurial skills and the impact of the PP in the community. The study found that the PP has an impact on beneficiaries’ business operations, increasing sales, turnover and profit. The ability to help their communities was another indicator of success for some beneficiaries. The partnership program is significantly informed by word of mouth. This creates an immediate level of trust that focuses not only on financial collateral but also on building up trust at the personal level. At the cultural level, the program is supported by what the ethnic groups in Makassar refer to as “siri” (the concept of shame and dignity) whereby the trust shown in you by someone else must be fulfilled.