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Objective: The main objective of this study is to assess the impact of Bank Indonesia's MSME Development program on economic growth, with a specific focus on the role of green economic policies as an intervening variable. This research seeks to identify key factors that contribute to the sustainability and growth of MSMEs in Indonesia. Theoretical Framework: This study draws upon theories of sustainable economic development, focusing on the role of green economics in business sustainability. The framework integrates concepts from corporate sustainability, economic growth, and environmental policy, exploring how MSMEs can leverage green practices to boost economic performance. Method: A mixed-method approach was employed, combining quantitative analysis of survey data and statistical tests with qualitative methods such as interviews and case studies. The quantitative analysis examines the direct and indirect effects of the MSME development program, while the qualitative analysis provides deeper insights into the processes and challenges faced by MSMEs in adopting green economic policies. Results and Discussion: The findings indicate that MSMEs that implement Bank Indonesia's MSME development program experience significant positive effects on economic growth. These effects are further enhanced when green economic policies are incorporated into MSME practices. Specifically, the research identifies several key factors contributing to growth 1.Corporate Structuring: Positive impact on economic growth through the establishment of stronger business foundations, 2.Capacity Building: Expansion of business capabilities leads to improved performance and sustainability,3. Market Expansion: Broader market access fosters economic resilience and growth, 4.Outboarding: The adoption of outboarding strategies leads to improved international competitiveness, 5.Intervening Role of Green Economic Policies: Green policies significantly enhance the effects of MSME development initiatives, contributing to greater economic stability and growth. Research Implications:. This research highlights the importance of integrating green economic policies in MSME development programs, providing a roadmap for policymakers to design sustainable growth strategies. By focusing on sustainability, MSMEs can not only contribute to economic growth but also support broader environmental and social goals.. Originality/Value: This study is one of the first to explore the intersection of MSME development, economic growth, and green economic policies in the context of Indonesia. It contributes valuable insights into how sustainable practices can be integrated into MSME strategies to foster long-term economic resilience..
Hadi et al. (Mon,) studied this question.