Innovation of the Integrated Business Service Center at the South Sulawesi Province Cooperatives and SMEs Office in Increasing the Competitiveness of MSMEs

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play an important role in the Indonesian economy, especially in South Sulawesi Province. However, the competitiveness of MSMEs is often constrained by limited access to information, technology, financing, and markets. To answer these challenges, the South Sulawesi Province Cooperatives and SMEs Office developed the Integrated Business Service Center (PLUT) as a public service innovation that aims to support the development of MSMEs as a whole. This research aims to analyze various forms of innovation applied in PLUT, measure their impact on the competitiveness of MSMEs, and identify the challenges faced in its implementation. This study uses a qualitative approach with a case study method. Data was obtained through in-depth interviews with PLUT managers, MSME actors, and strategic partners; observation of PLUT's operational process; as well as analysis of policy documents and annual reports. The results of the study show that innovation at PLUT South Sulawesi focuses on three main aspects: digitization of services, strengthening the capacity of human resources (HR) of MSMEs, and developing market access. The digitization of services includes the development of an online platform for business consulting, training, and promotion of MSME products through e-catalogs. This approach allows MSME actors in remote areas to access services more easily, although its implementation is still constrained by limited technological infrastructure. This study concludes that innovation in PLUT South Sulawesi makes a significant contribution to increasing the competitiveness of MSMEs, although it still needs further improvement and support to overcome existing challenges. The recommendations submitted include strengthening digital infrastructure, increasing human resource capacity at PLUT, expanding synergy with the private sector, and strengthening regulations to support the sustainability of service innovation. This finding can be an important reference for policy development in the MSME sector, especially for areas with similar characteristics