Success Stories of Pertamina's Fostered MSMEs: From Home Workshop to Venturing into Vehicle Trading Business

Sukabumi, June 5, 2023 - Pertamina's Partnership Program has successfully transformed a home workshop owner into a thriving automotive business. Ismatullah (44 years old)'s success story proofs Pertamina’s efforts and positive impact in promoting its partner MSMEs’ progress through capital loans, mentoring, and guidance.

"Since becoming a Pertamina fostered MSME, the most significant change I have experienced, apart from receiving capital loans to expand my spare parts business, is the tremendous help provided through various training sessions, especially in bookkeeping. Now, my financial records are more organized, and the income sources are clearer because I have separated the income from motorcycle servicing, spare parts sales, and vehicle trading. It allows me to identify which funds can be allocated as profits. I have also been taught how to provide excellent customer service to ensure customer loyalty," explained Ismatullah, familiarly called Ismet.

Ismet manages Bengkel Ababbiel at Jalan Pasar Baru Cisaat, Sukamanah Village, Sukabumi. The workshop has now ventured into the sale and purchase of second-hand motorcycles. On average, Ismet sells 15 motorcycles per month. "The highest sales occur during the pre-Lebaran period, where up to 40 motorcycles are sold due to the high travel demand," said Ismet, a Machine Technical School (STM) graduate.

In addition to motorcycle servicing, Bengkel Ababbiel also sells various spare parts such as tires, rubber seals, spark plugs, motorcycle chains, brake pads, clutch pads, and many others, including Pertamina's motorcycle oils such as Enduro Matic, Enduro Racing, Mesran, and Prima XP.

"I always prioritize customers’ satisfaction, one of which is by guaranteeing that the lubricant products we sell are genuine, even though the price may differ compared to counterfeit oils available in the market. Usually, customers who have experienced issues with counterfeit lubricants bring their motorcycles to our workshop, fully aware of the consequences of using fake oils on their vehicles' engines. Through word-of-mouth, many have switched to using our oils," said Ismet, who generates an average monthly turnover of IDR 3 million from lubricant sales.

Initially, Ismet's business only offered motorcycle servicing, and had no employees. However, he now has four employees, consisting of three mechanics and one specialist in handling accident-damaged motorcycles. Despite having employees, Ismet still personally gets involved in vehicle servicing. "A workshop's service is like a doctor’s service. If customers feel satisfied with the mechanic's work, they will continue to seek our services," said Ismet, who earns an average monthly profit of up to IDR 25 million.

Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), explained that the motorcycle workshop business continues to grow following the increasing motorbike population each year. According to the Central Statistics Agency's report at the end of 2022, there were approximately 125.3 million motorcycle units in Indonesia, making the workshop service sector a promising business field. Furthermore, the workshop business provides a multiplier effect for economic growth by creating skilled employment opportunities while offering added value and creating shared value through the Pertamina lubricant products sale.

"Small businesses engaged in the service sector, such as workshops, are eligible to obtain loan funding through the partnership program. Pertamina guides service sector MSMEs with a focus on financial management, business administration, customer service, and creating a conducive work environment," explained Fadjar.

Ismet confirmed this statement. The rapid growth of his business is attributed to his marketing skills and commitment in providing the best service to ensure customer loyalty. "Bengkel Abbabiel has gained popularity through word-of-mouth from satisfied customers who have experienced our motorcycle servicing. Since the current space is becoming limited, I plan to open a workshop on the main road in Sukabumi city to reach even more customers," said the father of four children.

Pertamina's Micro Small Business Funding Program (PUMK), provided to its partner businesses, aligns with the Sustainable Development Goals (SDGs) implementation, specifically SDG 8, which aims to promote inclusive and sustainable economic growth, productive employment, and decent work for all.

As a leading company in energy transition, Pertamina is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly contribute to achieving the Sustainable Development Goals (SDGs). All these efforts follow the Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**

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