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KUMPUL x Pegadaian: A Collaboration to Unlock Wider Potential Growth for Sustainable Fashion MSMEs

The Indonesian local fashion and craft industries are all about everyday life and the love to preserve our rich cultural heritage and sustainable environment. To stay in sync with the global issue of climate change, various creative entrepreneurs are taking traditional craftsmanship to a whole new level while keeping things eco-friendly. They’re not just making invaluable fashion, but also helping communities for a better environment through their business model.

From a zero-waste approach to upcycling, these entrepreneurs bring broader value to their products and to how their business grows. This is where the collaboration between KUMPUL.ID and PT. Pegadaian stands as a promising avenue for MSMEs in these sectors to further their growth and global reach to scale up.

At its essence, the foundation of Indonesia’s craft progression revolves around the profound interplay between daily life and the enduring cultural heritage passed down through generations. These enterprises, along with many others deserving acknowledgment, have elevated the knowledge of local craftsmanship to fashion innovative and eco-friendly products that simultaneously empower communities and preserve the environment.

This industry within the MSME sector has shown remarkable potential for export and supporting the circular economy through sustainable practices which contribute greatly to Indonesia’s GDP. However, these businesses often face challenges in access to facilities and resources needed to support their growth and how they do their business better. This limitation hampers their ability to fully tap into the global market.

A standout feature of many Indonesian MSMEs in fashion and craft is their commitment to sustainability through upcycling. These businesses leverage discarded materials and transform them into innovative and eco-friendly products, adding bigger value to their products and their business, as well as their cause for battling climate issues.

Recognizing the immense potential of these MSMEs, Pegadaian collaborates with KUMPUL.ID to provide a significant boost to MSMEs’ journey, particularly those engaged in upcycling and sustainable practices, enabling these businesses to access the necessary support to expand their operations, enhance product quality, and reach a broader customer base.

This partnership is a significant step forward in supporting the circular economy in Indonesia, as it aligns with the government’s sustainability goals and promotes responsible business practices. This shall represent a pivotal moment for Indonesian MSMEs in the fashion and craft sector.

With access to the necessary resources through this collaboration, these businesses will be better positioned to reach their highest business potential and contribute substantially to the economy. Furthermore, their commitment to sustainability and upcycling not only supports the environment but also resonates with global consumer trends.

This collaborative effort between KUMPUL and Pegadaian for MSME will testify to the belief that sustainable, responsible business practices can drive economic growth that will become a win-win for local MSMEs, the environment, and the nation’s growing economy.