Empowering MSMEs in Indonesia: The Strategic Role of Universities in Fostering Innovation and Sustainability

This study investigates the critical role universities play in the development and empowerment of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. The purpose is to evaluate the impact of internal and external university assistance on MSMEs, encompassing entrepreneurial training, mentoring for innovation, access to advanced facilities, collaboration with external stakeholders, and funding facilitation, while proposing strategies to enhance MSME competitiveness and sustainability. The research employs mixed methods, combining qualitative techniques such as in-depth interviews and focus group discussions with quantitative approaches including surveys and statistical analysis. A case study approach is applied to analyze the effectiveness of university-led programs, supplemented by document reviews for secondary data. Findings indicate that university assistance has significantly increased MSMEs' revenue by up to 30%, improved technology adoption, expanded market reach to international audiences, and fostered product innovation. Programs such as the Student Entrepreneurial Development Program (P2MW) and technological grants have successfully addressed MSME challenges, positioning universities as catalysts for growth. The study concludes that through multi-sectoral partnerships and inclusive strategies, universities are instrumental in bridging gaps in MSME development. By fostering innovation, facilitating access to resources, and addressing global economic demands, universities reinforce their role as drivers of national and regional economic sustainability.