Mushroom Cultivation and Cassava Chips Business Boost Probolinggo's Economy

Jakarta, January 25, 2022 – In the midst of the COVID-19 pandemic situation which has been running for almost two years, Micro, Small and Medium Enterprises (MSMEs) assisted by PT Paiton Energy (Paiton Energy) and PT Paiton Operation & Maintenance Indonesia (POMI) are still keep running and growing, even able to support the family economy.

Paiton Energy and POMI have empowered MSMEs in the Probolinggo area, East Java, since 2014. This program is to help the community of home-scale processed food craftsmen to increase productivity, increase income, and create jobs for the surrounding community.

The Company provides assistance to craftsmen in conducting production analysis, opening marketing networks, business feasibility standards, and encouraging local residents to be involved in production and marketing activities.

This MSME empowerment program is primarily aimed at women as superior entrepreneurs. In this case, the Company cooperates with the District Representative Council (DPK) for Women Farmers, the Indonesian Farmers Association (HKTI) of Probolinggo Regency, to develop and produce local products.

Some of the stories of MSMEs fostered by Paiton Energy and POMI include Bu Ninik's mushroom cultivation business and Bu Pipit's cassava chips business. Now both local food products have become typical souvenirs of Probolinggo

Bu Ninik is one of the participants in the mushroom cultivation training held by the Company and has successfully carried out all stages of mushroom processing. The Mushroom House was also established by the Company as a tribute to her success in implementing the results of the training.

"Our mushroom cultivation business currently has the name Mahkota Jamur Group, and the results of its cultivation are baglog (wood shavings waste), mushroom seeds, edible mushrooms, and crispy processed mushrooms," said Bu Ninik.

Meanwhile, Bu Pipit's cassava chips business began to develop and changed her family's economy a lot after receiving guidance from Paiton Energy and POMI.

Bu Pipit attended training on packaging, marketing, licensing for Home Industry Food (PIRT) and also had the opportunity to take part in comparative studies to similar business centers that were more advanced in the city of Malang. After following all these processes, the name IKM Gazal Makmur was created.

“Currently buyers come directly to our house, usually to resell to markets in cities around Probolinggo Regency such as Surabaya and Malang, we have even made deliveries to Kalimantan several times. There has also been an offer to be sent to Thailand, but we have not been able to fulfill the requested amount,” said Bu Pipit.

Chief Financial Officer of Paiton Energy, Bayu Widyanto said that the Company has established the Sustainable Entrepreneurship Program as one of the focuses of its community empowerment program.

"This program aims to increase the economic capacity of the community through sustainable development of MSMEs so that they can drive the regional economy, create jobs, and improve family welfare," said Bayu.

CFS Manager of PT Paiton Energy – POMI Bambang Jiwantoro said the Company consistently implemented a MSME development strategy through 3 (three) stages, namely Empowerment (capacity building), Replication, and Scaling Up.

"The Company also has the same view, commitment and strong spirit with our strategic partner, HKTI Women Farmers Probolinggo Regency," said Bambang.

"The "Bela Beli Produk Lokal" program is a very strong form of partisanship and is expected to be able to accelerate the development of MSMEs in Probolinggo Regency," continued Bambang.

Chairman of the DPK PTHKTI Probolinggo Regency, Dr. dr.  Mirrah Samiyah MARS said the “Bela Beli Produk Lokal" program really helps MSMEs in creating a more equitable economy and at the same time can provide inspiration for the progress and development of MSMEs in Probolinggo Regency.

Paiton Energy has implemented the CSR program since 2000 which is designed annually and monitored by the Community Development Committee. Programs are categorized into three focuses, namely supporting the sustainability of companies (power plant), socio-economic sustainability, and energy and environmental sustainability.

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