Small Business Empowerment Strategy in Indonesia

This paper aims to investigate the strategy for empowering small businesses in Indonesia. The current study applied a library research method. From the results and discussion, it can be concluded that the principle of mutual need will ensure a more sustainable partnership because of its "natural" attribute rather than it's “sympathizes.” Based on this principle, large-scale businesses will always partner up with small businesses as partners in progress. Most of the foster parent and foster child (subsidiary) system is not based on the mutual need principle. This is based on the fact that oftentimes the businesses of the foster parent are totally different and there are no upstream-downstream or downstream-upstream relationships amongst the businesses of its small businesses subsidiary corporations. This foster parent system requires the Stated Owned Enterprise to spend 1-5% of its profits, and the large private companies in a persuasive way. In reality: (1) the guidance provided by the foster parent is considered less effective as the foster parent is like a sinterklaas who shares the development funds without taking into account its subsidiary company business dynamics ; (2) the parent company also feels that the partnership established is merely aimed at accomplishing a social mission