The Institutional Capacity Building on MSEs - SOEs Partnership Program in Indonesia: A Case Study on Partnership Program at PT. Telekomunikasi Indonesia, Tbk

The MSEs development in Indonesia is still a significant issue, related with that contribution to the number of business unit and the development which has not been optimal. One of the development program of MSEs by the goverment is conducted through the Partnership Program (PP) between MSEs Partners with State-Owned Enterprises, base on the PER-05/2007. PT. Telkom is one of SOEs that has been realizing the PP through institutional capacity building since 2001, and got success with the average performance more than 98 % (during the study in period 2010-2012). The purpose of this study is to explore the implemention the institutional capacity mentioned. This research conducted by qualitative method with the case study strategy. The result of this research showed that the institutional capacity building on this PP conducted through tangible& intangible factors: 1) Building competencies in managing MSEs institutional; and 2) Social interactions arrangements in a business entity, both realized by three programs: Dropping, Collecting, and development program for MSEs governance and integrity. The result of this research also showed that there are three important factor that support the successful of this program: the funding, the internal& external support, and using two application system based on information technology.