This White Paper outlines the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in the Indonesian economy, as well as the challenges and opportunities they face in the transition to a green economy. Contributing 61% of GDP and employing 97% of the workforce, MSMEs are strategically positioned to drive sustainable growth. However, their large production activities have the potential to increase energy consumption and carbon emissions. The White Paper analyzes the key obstacles hindering MSMEs from adopting green practices, including low awareness, limited access to financing, an unspecific regulatory framework, limited access to technology, and limited technical and managerial capacity. Furthermore, the report identifies opportunities that can catalyze transformation, such as increasing market demand for green products, national policy support, international funding flows, and local technological innovation. This White Paper serves as a strategic foundation for formulating targeted policies and programs to create a sustainable MSME business ecosystem.

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Green economy, green MSMEs, sustainable business, MSME transformation, green financing, carbon emissions, renewable energy, sustainable business practices, environmental policy, sustainable economic development.