1 CHAPTER I INTRODUCTION 1.1 Background Micro, Small, and Medium Enterprises (MSMEs) play a crucial and strategic role in the Indonesian economy. According to Government Regulation Number 7 of 2021 regarding MSMEs, MSMEs are defined as independent productive economic entities operated by individuals or business entities with a maximum business capital of ten billion and a maximum business turnover of fifty billion per year. According to data from the Indonesian Chamber of Commerce (Kadin Indonesia), the number of MSME business owners in Indonesia is projected to reach 66 million by 2023, accounting for 99% of all business units. The growth of MSMEs in 2023 is expected to increase by 1.52% compared to 2022. Over the past decade, the employment of MSME workers in Indonesia has shown significant growth, rising from 114,144,082 workers (approximately 96%) in 2013 to 117,000,000 workers (97%) in 2023. Additionally, MSMEs contribute 61% to the Gross Domestic Product (GDP), amounting to IDR 9.58 trillion. Figure 1: Growth of Indonesian MSMEs In Indonesia, various types of MSMEs include culinary, fashion, crafts, accessories, services, beauty products, digital marketing, creative, health, and others. According to BPS data, the culinary sector, specifically food and beverages, has the highest number of MSMEs, with 1,694,853 business units in 2022. Culinary businesses are a popular choice for Indonesian entrepreneurs due to their accessibility and low capital requirements 2 (Harahap and Tambunan, 2022). Supporting culinary MSMEs in Indonesia is crucial to sustain the resilience of micro entrepreneurs in this sector. In the MSMEs culinary in Indonesia, there is a wide range of food and beverage options available to cater to the diverse tastes and preferences of consumers. One emerging culinary trend in Indonesian MSMEs involves using basic ingredients with unique flavors that are also beneficial for health, such as dishes made from dates. Dates (Phoenix dactylifera) are a staple food in the Middle East and belong to the palm tree family, originating from the Arabian Peninsula and North Africa. Dates typically thrive in desert regions with high heat tolerance, low humidity, and dry air (Qibty, 2023). In Indonesia, dates can be successfully grown in West Nusa Tenggara, East Nusa Tenggara, and South Sulawesi. Dates contain various nutrients such as carbohydrates (glucose, fructose, sucrose), protein in the form of methionine and cysteine, complex B vitamins and K vitamins (Al-Farsi et al., 2008). In addition, dates are also a source of several minerals such as fluorine, cobalt, iron, calcium, magnesium, potassium, copper, sodium, manganese, zinc, boron, sulfur, phosphorus and selenium (Al-Farsi et al., 2007). They are a good source of dietary fiber, potassium, and antioxidants, which contribute to digestive health, heart health, and overall well-being (Brouk and Fishman, 2016). In addition to being consumed on their own, dates can also be mixed into beverages. Date- based drinks provide a distinct flavor profile and are often chosen by health-conscious individuals due to their natural sweetness and potential nutritional advantages. Date-based drinks can be prepared in various forms, such as dates smoothies, shakes, or infused waters, offering versatility and appealing to different consumer preferences. The market for date-based drinks can be influenced by factors such as consumer awareness of the health benefits of dates, the availability of date-based products in cafes and retail stores, and the marketing efforts employed by businesses to promote these beverages. Date milk, a beverage currently gaining popularity in Indonesia, is a mixture of milk and dates. The type of milk used can vary, including cow's milk, goat's milk, or soy milk. This drink has been enjoyed by people in the Arabian Peninsula for centuries, as it is believed to boost the body's immunity and protect against chronic diseases (Sayyid, 2012). Date milk is often flavored with spices like cinnamon to enhance its unique taste and aroma. Date milk has gained popularity in Indonesia since the onset of the COVID-19 pandemic 3 in 2020. This beverage, which combines the nutritional benefits of milk and dates, is believed to boost immunity and provide protection against the coronavirus. Furthermore, date milk offers various health benefits including alleviating constipation, promoting bone health, enhancing skin health, supporting a healthy nervous system, improving heart health, preventing iron deficiency anemia, and enhancing muscle strength (Fuziawatie, 2021). In Indonesia, date milk production is categorized into two main types: household-scale MSME production and industrial-scale production.