This research aims to determine the strategy of the Jakarta Provincial Government in increasing the resilience and growth of small and medium enterprises (SMEs) within a collaborative governance framework post-COVID-19. This study explores the effectiveness of SMEs and facilities in accessing financing and fostering collaborative partnerships between SMEs, government agencies, and financial institutions by utilizing USAID’s Theory of Change (TOC). This research uses a qualitative approach supported by in-depth interviews and Focus Group Discussions to enrich the insights of SME stakeholders, large companies, and SME actors and assess the impact of their roles. The results of this research highlight the critical role of SME Cooperative Banks (SCB) in improving SMEs’ access to credit and financial services, including collaborative governance frameworks and partnerships between SMEs, government agencies, and banks, which were identified as necessary to improve policy coherence and encourage conducive SME business environment conditions. The main findings of this research underscore the importance of the SCB model, demonstrating its potential to improve SME resilience and economic sustainability. This SCB model enriches the TOC indicators introduced by USAID. The study identifies gaps in digital infrastructure and market access that hinder SME growth and recommends targeted interventions to address these challenges. This study shows that SCB offers a promising pathway to increase the resilience and growth of SMEs in Indonesia, especially if accompanied by effective collaborative governance strategies. These initiatives can encourage inclusive economic development and strengthen the role of SMEs as drivers of the local economy. Recommendations include expanding the SCB model to other regions, encouraging digitalization, facilitating market access, advocating for a supportive policy framework, and integrating these strategies to advance the principles of USAID’s Theory of Change, fostering sustainable SME development and economic resilience.

Agostini, L., Nosella, A., & Venturini, K. (2019). Toward increasing affective commitment in SME strategic networks. Business Process Management Journal, 25(7), 1822–1840. https://doi.org/10.1108/bpmj-02-2018-0035

Aidi, Z., Prawira, M., & Fitriadi, M. (2023). Indonesia Legal Policy for Micro, Small, and Medium Enterprises Post-COVID-19 Pandemic Economic Recovery. Review of Economics and Finance, 21, 2611–2617. https://doi.org/10.55365/1923.x2023.21.279

Al-Hanakta, R., Hossain, M. B., Pataki, L., et al. (2023). Eco-innovation influence on business performance in Jordanian micro, small and medium enterprises operating in the food processing sector. PLOS ONE, 18(2), e0281664. https://doi.org/10.1371/journal.pone.0281664

Albalushi, K., & Naqshbandi, M. M. (2022). Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East. Knowledge, 2(3), 525–538. https://doi.org/10.3390/knowledge2030031

Alhalawi, N. S., & Dammak, S. (2024). Breaking the budget chains: Empowering Iraqi small- and medium-sized enterprises through Beyond Budgeting. South African Journal of Economic and Management Sciences, 27(1). https://doi.org/10.4102/sajems.v27i1.5211

Aničić, Z., & Paunović, B. (2022). The Covid-19 crisis and small and medium-sized enterprises (SMEs) in Serbia: responsive strategies and significance of the government measures. Journal of East European Management Studies, 27(3), 404–433. https://doi.org/10.5771/0949-6181-2022-3-404

Antonescu, D. (2020). Supporting small and medium size enterprises through the covid-19 crisis in Romania. Central European Journal of Geography and Sustainable Development, 2(1), 38–57. https://doi.org/10.47246/cejgsd.2020.2.1.4

Audretsch, D. B., Belitski, M., Caiazza, R., et al. (2023). Collaboration strategies and SME innovation performance. Journal of Business Research, 164, 114018. https://doi.org/10.1016/j.jbusres.2023.114018

Bianchi, C., Nasi, G., & Rivenbark, W. C. (2021). Implementing collaborative governance: models, experiences, and challenges. Public Management Review, 23(11), 1581–1589. https://doi.org/10.1080/14719037.2021.1878777

Caballero-Morales, S. O. (2021). Innovation as recovery strategy for SMEs in emerging economies during the COVID-19 pandemic. Research in International Business and Finance, 57, 101396. https://doi.org/10.1016/j.ribaf.2021.101396

Cao, Y., & Yue, S. (2023). The establishment of city commercial banks and China’s green economy development. Environmental Science and Pollution Research, 30(33), 80844–80854. https://doi.org/10.1007/s11356-023-28079-7

Celestin, P. R. (2020). Effect Of Covid-19 on Micro, Small and Medium Enterprises (MSMEs) In Rwanda: Strategic Journal of Business & Change Management, 7, 1630–1655. https://doi.org/10.61426/sjbcm.v7i4.1886

DeJonckheere, M., & Vaughn, L. M. (2019). Semistructured interviewing in primary care research: a balance of relationship and rigour. Family Medicine and Community Health, 7(2), e000057. https://doi.org/10.1136/fmch-2018-000057

Dhir, S. K., & Gupta, P. (2021). Formulation of Research Question and Composing Study Outcomes and Objectives. Indian Pediatrics, 58(6), 584–588. https://doi.org/10.1007/s13312-021-2246-y

Erlando, A., Riyanto, F. D., & Masakazu, S. (2020). Financial inclusion, economic growth, and poverty alleviation: evidence from eastern Indonesia. Heliyon, 6(10), e05235. https://doi.org/10.1016/j.heliyon.2020.e05235

Findley, A., Sharma, G., Bentley, S., et al. (2022). Comparison of Literature Review, Social Media Listening, and Qualitative Interview Research Methods in Generating Patient-Reported Symptom and Functional Impact Concepts of Presbyopia. Ophthalmology and Therapy, 12(1), 501–516. https://doi.org/10.1007/s40123-022-00620-w

Guimarães, L. G. de A., Blanchet, P., & Cimon, Y. (2021). Collaboration among Small and Medium-Sized Enterprises as Part of Internationalization: A Systematic Review. Administrative Sciences, 11(4), 153. https://doi.org/10.3390/admsci11040153

Hermansyah, A., Samudra, A. A., & Satispi, E. (2024). Policy dialogue: Key factors for the success of transit-oriented development infrastructure 3.0 in big cities in Indonesia. Journal of Infrastructure, Policy and Development, 8(5), 1–23. https://doi.org/https://doi.org/10.24294/jipd.v8i5.3400

Ichsan, M. (2022). Handling Natural Hazards in Indonesia amid the COVID-19 Pandemic: Muhammadiyah’s Response and Strategy. Jàmbá Journal of Disaster Risk Studies, 14(1), 1254. https://doi.org/10.4102/jamba.v14i1.1254

ILO. (2020). Answering Key Questions around Informality in Micro and Small Enterprises during the COVID-19 Crisis Question 1: Why Should Informal Enterprises Be Supported during and after the Pandemic? Available online: https://www.ilo.org/empent/Publications/WCMS_755276/lang--en/index.htm (accessed on 16 March 2024).

Kusnandar, V. B. (2021). The Number of Micro and Small Industries Growing in Jakarta, How Many (Indonesian)? Available online: https://databoks.katadata.co.id/datapublish/2021/08/05/jumlah-industri-mikro-kecil-bertumbuh-di-jakarta-berapa-angkanya (accessed on 16 March 2024).

Larrea, M., Arrona, A., & Barandiaran, X. (2024). A place-based approach in collaborative governance. Oñati Socio-Legal Series. https://doi.org/10.35295/osls.iisl.1892

Mariyudi, N. A. (2019). Success factors of SMEs: the case of Indonesia. International Journal of Business Innovation and Research, 19(2), 204. https://doi.org/10.1504/ijbir.2019.100074

Morales Pedraza, J. (2021). The Micro, Small, and Medium-Sized Enterprises and Its Role in the Economic Development of a Country. Business and Management Research, 10(1), 33. https://doi.org/10.5430/bmr.v10n1p33

Nadja, R. A., Budiasa, K., Rukka, R. M., et al. (2021). Comparative analysis of production and income of rice farmers using and not using people’s business credit (KUR). IOP Conference Series: Earth and Environmental Science, 807(3), 032067. https://doi.org/10.1088/1755-1315/807/3/032067

Nobi, Md. N., Ali, Md. M., & Hossain, S. (2023). The involvement of non-state actors in international relations: pros and cons for development processes in countries of the global south. Global Journal of Business, Economics and Management: Current Issues, 13(3), 231–239. https://doi.org/10.18844/gjbem.v13i3.9036

OECD. (2022a). Financing SMEs and Entrepreneurs 2022. Available online: https://www.oecd.org/publications/financing-smes-and-entrepreneurs-23065265.htm (accessed on 16 March 2024).

OECD. (2022b). Recent Trends in SME and Entrepreneurship Financing. Available online: https://www.oecd-ilibrary.org/sites/5c0e189f-en/index.html?itemId=/content/component/5c0e189f-en (accessed on 16 March 2024).

OECD. (2024). Financing SMEs and Entrepreneurs 2024: An OECD Scoreboard. In: Conference on Access to Finance for SMEs: Assessment and Perspectives, 1st ed. Paris, France: OECD.

Öhlén, J., & Friberg, F. (2023). Empirical Phenomenological Inquiry: Guidance in Choosing Between Different Methodologies. Global Qualitative Nursing Research, 10, 233339362311735. https://doi.org/10.1177/23333936231173566

Paunović, B., & Aničić, Z. (2021). Impact of the COVID-19 crisis on SMEs and possible innovation responses. Ekonomika Preduzeca, 69(3–4), 169–184. https://doi.org/10.5937/ekopre2103169p

Safitri, Y., Ningsih, R. D., Agustianingsih, D. P., et al. (2021). COVID-19 Impact on SDGs and the Fiscal Measures: Case of Indonesia. International Journal of Environmental Research and Public Health, 18(6), 2911. https://doi.org/10.3390/ijerph18062911

Samudra, A. A., Hertasning, B., & Ladoni, A. (2024). Policy for handling air pollution in Jakarta: Study using System Dynamics Simulation Models. Journal of Infrastructure, Policy and Development, 8(2), 1–18. https://doi.org/https://doi.org/10.24294/jipd.v8i2.29 69

Sumada, I. M., & Samudra, A. A. (2023). Implementation of HIV/AIDS prevention policies: The study in Bali Province, Indonesia. Journal of Infrastructure, Policy and Development, 7(2), 2287. https://doi.org/10.24294/jipd.v7i2.2287

Syahrian, A. F. (2019). Procedures for Applying for Micro, Small and Medium Enterprises (MSME) Credit to Cooperatives (Indonesian). Available online: https://elibrary.bsi.ac.id/tugasakhir/A12220210058I093523/prosedur-pengajuan-kredit-usaha-mikro-kecil-dan-menengah-umkm-pada-koperasi-arrahmah-gandul-depok (accessed on 27 March 2023).

Tempo.co. (2024). MSMEs want to get a bank loan, here are the methods and conditions (Indonesian). Available online: https://bisnis.tempo.co/read/1820716/umkm-ingin-dapatkan-pinjaman-bank-begini-cara-dan-syaratnya (accessed on 27 March 2023).

Tsang, A., & Maden, M. (2021). Cluster searching approach to inform evidence syntheses: A methodological review. Research Synthesis Methods, 12(5), 576–589. https://doi.org/10.1002/jrsm.1502

USAID. (2019). Theories of Change: High-Growth Small and Medium Enterprise Development. Available online: https://www.marketlinks.org/sites/default/files/theories_of_change_-_high-growth_sme_development_5.13.19.pdf (accessed on 16 March 2024).

Velavan, T. P., & Meyer, C. G. (2020). The COVID‐19 epidemic. Tropical Medicine & International Health, 25(3), 278–280. https://doi.org/10.1111/tmi.13383

Wainwright, M., Zahroh, R. I., Tunçalp, Ö., et al. (2023). The use of GRADE-CERQual in qualitative evidence synthesis: an evaluation of fidelity and reporting. Health Research Policy and Systems, 21(1). https://doi.org/10.1186/s12961-023-00999-3

Yun, J. J., & Liu, Z. (2019). Micro- and Macro-Dynamics of Open Innovation with a Quadruple-Helix Model. Sustainability, 11(12), 3301. https://doi.org/10.3390/su11123301

Zhang, S., & Wang, Z. (2023). Effects of Vertical Fiscal Imbalance on Fiscal Health Expenditure Efficiency—Evidence from China. International Journal of Environmental Research and Public Health, 20(3), 2060. https://doi.org/10.3390/ijerph20032060