Building a Green Micro, Small, and Medium Enterprises (MSME) Ecosystem in East Kalimantan

SAMARINDA-EAST KALIMANTAN, 5-11 June 2026 – Indonesia's energy transition is often associated with renewable energy technologies, power plants, and ambitious national policies. Yet beyond infrastructure and investment lies another equally important dimension of the transition, people.

Across the country, millions of micros, small, and medium enterprises (MSMEs) form the backbone of Indonesia's economy. They create employment, stimulate local markets, and sustain household incomes. As the country moves towards a greener and more resilient economy, these businesses are expected not only to adapt to changing market demands but also to become active contributors to sustainable development. This challenge is particularly relevant in East Kalimantan.

As one of Indonesia's major coal-producing provinces, East Kalimantan is entering an important period of economic transformation. The transition towards cleaner energy presents new opportunities for investment and innovation, but it also requires local economies to diversify beyond traditional industries. For communities and entrepreneurs, this means developing new business models, improving competitiveness, and creating sustainable sources of income that can thrive in a changing economic landscape.

Supporting this transformation requires more than introducing new technologies. It requires strengthening local capacities, encouraging innovation, improving access to finance, and building collaboration among the institutions that support local businesses.

Recognising this need, GIZ, through the Green Jobs for Social Inclusion and Sustainable Transformation (GESIT) and IKI Just Energy Transition (IKIJET) projects, collaborated with the Provincial Government of East Kalimantan and ecosystem partners to strengthen Green MSMEs across the province.

Rather than delivering a standalone training programme, the initiative was designed as a comprehensive ecosystem-building effort. It brought together government institutions, Business Development Service Providers (BDSPs), women-led MSMEs, financial institutions, business associations, and development partners to explore how sustainable business practices can create economic opportunities while supporting Indonesia's Just Energy Transition.

Building an Ecosystem, Not Just Delivering Training

For many MSMEs, sustainability can appear to be an abstract concept, often associated with large corporations or expensive technologies. The programme sought to change this perception by demonstrating that becoming a Green MSME starts with practical, achievable improvements.

A Green MSME is not defined solely by the products it sells. Rather, it reflects how a business manages its resources, reduces waste, improves energy efficiency, adopts circular economy principles, and creates positive environmental and social impacts while maintaining economic viability. To make this transformation possible, the programme adopted an ecosystem approach.

Instead of focusing exclusively on entrepreneurs, the initiative strengthened every actor involved in supporting MSME development.

The programme engaged 33 Business Development Service Providers (BDSPs), 55 women-led MSMEs, provincial government representatives, financial institutions, and business associations. Together, these stakeholders explored how stronger collaboration could accelerate the development of Green MSMEs in East Kalimantan.

This integrated approach recognised that entrepreneurs cannot transform their businesses alone. They need capable advisors, supportive government policies, accessible financing, and networks that connect them with markets and opportunities.By strengthening these different actors simultaneously, the programme laid the foundation for a more resilient Green MSME ecosystem.
 

Strengthening Business Advisors as Agents of Change

Business Development Service Providers are often the first point of contact for entrepreneurs seeking guidance to improve their businesses. Their ability to provide practical advice, identify market opportunities, and connect MSMEs with relevant support can significantly influence business growth. For this reason, the programme began with strengthening the capacity of BDSPs.

Participants explored topics including Green MSME concepts, business model development, circular economy, digitalisation, energy efficiency, and access to green financing. Rather than presenting sustainability as an environmental obligation, the discussions positioned it as a business strategy capable of improving competitiveness and long-term resilience.

One of the most engaging discussions focused on the potential of maggot and kasgot business models. Maggot is a larva from Black Soldier Fly (BSF) that well productive in organic waste. Kasgot is a waste from Maggot farming which can be utilize as fertilizer. Using organic waste as a valuable resource rather than a disposal problem, the model demonstrates how circular economy principles can generate both environmental and economic benefits. Organic waste from households, restaurants, and food businesses can be transformed into high-value products such as animal feed and organic fertiliser, creating new income streams while reducing waste sent to landfills.

During the training, Myra Eka Putri Br. Tarigan from the Cooperatives Division of the East Kalimantan Provincial Office for Cooperatives, SMEs, Industry and Trade (DPPKUKM) introduced the business model to participants. She explained that maggot and kasgot businesses offer practical opportunities for MSMEs to participate in the green economy while addressing local waste management challenges. More importantly, the model demonstrates that environmental sustainability and business profitability can go hand in hand.

For many participants, the discussion challenged conventional assumptions about business development. Sustainability was no longer viewed as an additional cost but as an opportunity for innovation. One entrepreneur who experienced this shift was Yuni Nurhayati, founder of Sekar Buen Nusantara. As a batik entrepreneur, she initially viewed sustainability primarily through an environmental lens. After participating in the programme, she began to see it as an essential strategy for strengthening long-term business resilience.

"This training broadened my understanding of the Green SME concept, how businesses can transition towards more sustainable practices, and opportunities to access green financing. As a batik entrepreneur, I see sustainability not only as an environmental issue, but also as a way to maintain long-term business competitiveness. Moving forward, I plan to integrate green values into the Batik Wastra curriculum and production process so that our business can become more resilient in facing economic and market changes."

Her experience reflects a broader transformation occurring among participants: sustainability is increasingly becoming part of business strategy rather than simply an environmental initiative.
 

Empowering Women Entrepreneurs to Lead the Green Economy

For many entrepreneurs, sustainability is often perceived as a concept reserved for large companies, one that requires significant investment, sophisticated technology, or major operational changes.

The Women-led Green MSME Training challenged this perception. Instead of introducing complex solutions, the programme demonstrated that becoming a greener business can begin with practical decisions made every day: reducing electricity consumption, minimising waste, selecting more sustainable packaging, or identifying new business opportunities through circular economy practices.

Bringing together 55 women-led MSMEs from across East Kalimantan, the programme created a collaborative learning environment where participants exchanged experiences, reflected on common business challenges, and explored how sustainability could strengthen - not burden - their businesses.

Throughout the sessions, discussions covered green business principles, circular economy, digitalisation, energy efficiency, sustainable production, and access to green financing. Yet perhaps the most valuable outcome was not the knowledge delivered by facilitators, but the shift in perspective experienced by participants themselves. Many left the programme realising that sustainability is not simply about protecting the environment.

It is about building businesses that are more competitive, more efficient, and more resilient in an increasingly changing economy.
 

When Waste Becomes Opportunity

One recurring theme throughout the discussions was the circular economy. Rather than viewing organic waste as something to dispose of, participants were encouraged to recognise its economic potential.

This perspective resonated strongly with Mardiana Dia, who has been developing businesses around maggot cultivation and used cooking oil recycling. For her, the programme reinforced an idea that had long been growing, that MSMEs can become active contributors to environmental solutions while simultaneously creating new economic opportunities.

"This training strengthened my belief that MSMEs can become part of the environmental solution through green products and circular economy practices. It helped me understand that waste can be transformed into valuable business opportunities. After this programme, I plan to share this knowledge with other MSMEs so that more entrepreneurs can contribute to protecting the environment while strengthening their economic resilience."

Her reflection captures one of the programme's broader ambitions. Knowledge should not stop with individual participants. Instead, each entrepreneur becomes a multiplier, sharing ideas, inspiring peers, and encouraging wider adoption of greener business practices within their communities.
 

Small Changes, Significant Impact

For Sri Rutmiati, owner of Kripik Pisang Srikandi, one discussion completely changed the way she looked at her production process. What had previously been considered ordinary organic waste suddenly became a potential business opportunity.

The introduction of maggot and kasgot business models demonstrated how production waste could be transformed into products with economic value while contributing to local waste management solutions. At the same time, she realised that sustainability also means using resources more efficiently.

"This training opened up new opportunities for me to develop maggot and kasgot businesses together with women-led MSME groups. I realised that organic waste from our businesses can be processed into products with economic value. I also gained a better understanding of the importance of energy efficiency. By managing electricity use more responsibly, operational costs can be reduced, making the business stronger and more resilient in facing economic changes."

Her experience reflects a simple but powerful message. Environmental sustainability and business performance are not competing priorities, and reducing waste creates new revenue opportunities.
 

A Greener Business Starts with Everyday Decisions

For some participants, the first step towards sustainability did not involve investing in new equipment or redesigning production processes. It began with changing habits.

Immediately after returning from the training, Asma, owner of Makrifah Herbal, introduced a simple practice within her workplace: switching off electrical equipment whenever it was no longer needed. Although seemingly minor, this decision represents an important shift in business thinking. For MSMEs operating on tight margins, every reduction in operational costs creates additional space for business development.

"After joining the training, I immediately encouraged my employees to switch off unused electrical equipment. I want to monitor how this affects our monthly electricity bill. For MSMEs, even small savings can be significant and can be redirected towards business growth. This simple action marks the beginning of our journey towards a greener and more efficient business."

Similarly, Nurhimkah, founder of Al-Kauna Food, began viewing sustainability from the perspective of customer value. She recognised that environmentally friendly packaging is not merely an environmental initiative, but also a way of strengthening consumer trust and positioning her products within an increasingly sustainability-conscious market. At the same time, she became interested in exploring green financing opportunities to modernise her production equipment and improve energy efficiency.

"This training increased my confidence that environmentally friendly business practices can create added value for customers. I have started educating consumers about sustainable packaging, even though it may cost slightly more. I am also interested in exploring green financing opportunities to upgrade to more energy-efficient production equipment. This will help the business grow while contributing positively to the environment."

Together, these stories illustrate that the transition towards greener businesses rarely begins with dramatic transformation. Instead, it starts with practical decisions that entrepreneurs can implement immediately within their own businesses.
 

From Capacity Building to Business Opportunities

Learning was never intended to be the programme's final destination. To ensure that newly acquired knowledge could evolve into tangible business opportunities, the initiative concluded with a Green MSME Matchmaking Event, connecting entrepreneurs with Business Development Service Providers, financial institutions, business associations, and government representatives. The event created a platform where participants could discuss financing needs, explore partnerships, and receive direct feedback on their business ideas.

Rather than ending with training certificates, the programme encouraged participants to begin planning their next steps. The enthusiasm generated during the discussions quickly translated into concrete commitments.

Among the participating MSMEs:

• 10 MSMEs expressed interest in developing maggot and kasgot business models.  
• 7 MSMEs committed to improving energy efficiency within their business operations. 

While these numbers may appear modest, they represent something much more significant. They demonstrate that participants were already moving from awareness towards action.
 

Partnerships that Enable Growth

Financial institutions also recognised the potential of green businesses. Representing Permodalan Nasional Madani (PNM), Iwan Razak, Head of PNM Balikpapan Branch, highlighted that circular economy-based businesses are becoming increasingly attractive for financing.

"The HORECA waste management service model using maggot and kasgot remains an attractive business opportunity for financing. Strong collaboration between Business Development Service Providers and PNM will be important to support the growth of Green MSMEs."

Meanwhile, Himpunan Pengusaha Pribumi Indonesia (HIPPI) East Kalimantan emphasised that successful entrepreneurship requires more than financial capital alone. Business mentoring, financial literacy, and strategic planning remain equally important.

As explained by Rezza, MSMEs seeking grants or CSR funding should first become part of HIPPI's mentoring ecosystem, where they receive guidance on costing, investment planning, and selecting appropriate production equipment before accessing financing opportunities.

Together, these perspectives highlight an important lesson, green businesses require green ecosystems.
 

Looking Ahead

The programme concluded with the signing of a non-binding Statement of Commitment, symbolising a shared aspiration among government institutions, Business Development Service Providers, financial institutions, business associations, and ecosystem partners to continue strengthening the Green MSME ecosystem in East Kalimantan. Yet perhaps the programme's greatest achievement cannot be measured by the number of participants, training sessions, or partnership meetings. Its true impact lies in something less visible, but far more enduring.

• A batik entrepreneur integrating sustainability into her production process.
• A food producer discovering new value in organic waste.
• A herbal business reducing unnecessary energy consumption.
• A financial institution recognising the commercial potential of circular economy solutions.

These are small stories. Together, they form a much larger one. Because a Just Energy Transition is not only about cleaner technologies or renewable energy infrastructure. It is equally about empowering entrepreneurs, strengthening local economies, and ensuring that communities have the confidence, knowledge, and partnerships needed to thrive in a changing world.

In East Kalimantan, that future is no longer an aspiration. It has already begun.

One entrepreneur. One partnership. One green business at a time.