LTKL and KEM Join Forces to Achieve Sustainable MSMB Development

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Palm Oil Stick Weaving Crafts Thrive in Siak Regency. Photo by: Special

PALMOILMAGAZINE, JAKARTA – As a component of the Supernova Ecosystem, Lingkar Temu Kabupaten Lestari (LTKL) has reaffirmed its dedication to fostering a sustainable economic model across nine regencies where its members operate. The primary objective is to cultivate a locally-driven sustainable economy through innovative approaches in environmental and social realms.

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LTKL’s commitment to developing a sustainable economic model is demonstrated through the establishment of sustainable enterprises that prioritize value addition, focusing on commodities with potential in their respective regions. By ensuring the preservation of forests, peatlands, and other vital economic ecosystems, the aim is to stimulate local economic growth and facilitate the penetration of green business products into various markets across Indonesia.

However, significant challenges hinder the development of sustainable micro, small, and medium-sized businesses (MSMBs) in these regencies, including limited production funds, insufficient human resource capacity, barriers to technology transfer, restricted market access, and logistical obstacles. To address these challenges, LTKL collaborates with Supernova Ecosystem and the Koalisi Ekonomi Membumi (KEM) to assess the potential of each regency and identify supply chain actors based on a supply chain framework.

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Vitri Sekarsari, Deputy Head of Partnership, Communication, and Resource Mobilization at LTKL, emphasized their ongoing collaboration with member regencies and various partners to map commodity potentials and develop innovative nature-based products.

“This is a must in upstream sector by focusing on agro-forestry, aquaculture, bamboo, coffee, cocoa, coconut, and ecosystem services,” Vitri said, as in the official statement to Palmoilmagazine.com recently.

Through incubation, innovation and production centers in five regencies of LTKL, more than 193 MSMB have been facilitated to get incubation process to be green MSMB. Of the numbers, about 45 MSMB now get development intensively for about 1 – 2 years to be MSMB that are ready to get investment.

Some MSMB, for instance, Alam Siak Lestari, Pinaloka in Regency of Siak; SSL, and Kalara Borneo successfully gets market access and fund through business matching, business incubation, market research and intensive development.

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Vitri continued to facilitate financial access and market in the upstream sector of supply chain, LTKL and KEM are in cooperation with Ministry of Investment/Investment Coordination Agency to launch sustainable investment guidelines. It is about to be the legal business transformation, including MSMB to get more sustainable practices.

Besides, LTKL also cooperates with Asosiasi Pemerintah Kabupaten Seluruh Indonesia (APKASI), Ministry of Internal Affairs, and Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP) to encourage that products produced by sustainable MSMB would be put into e-catalogue and e-procurement.

In the public service and goods procurement, LTKL is now helping two regencies (members of LTKL – Musi Banyu Asin and Sanggau) in piloting with LKPP and Ministry of Internal Affairs to adopt sustainable service and goods procurement that focus on MSMB products in natural – base.

In a whole, as part of KEM, LTKL successfully created stories in nine intervene regencies. Partnership and Communications Manager, KEM, Bryan Citrasena told his hope that the good practices would get expansion to other regencies managed by KEM.

With the target to get open fund for about US$ 200 million for 100 sustainable businesses that connect with 100 regencies, KEM and LTKL would keep cooperating to accelerate transformation heading to more sustainable and inclusive economy. (T2)

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