Archives of Business Research – Vol.7, No.12 Publication Date: Dec. 25, 2019 DOI: 10.14738/abr.712.7386. Hayatti, N. N., Arief, M., & Wildan, M. A. (2019). The Impact Of Partnership Program To The Marketing Capabilities On Fostered SMEs. Archives of Business Research, 7(12), 207-218. The Impact Of Partnership Program To The Marketing Capabilities On Fostered SMEs Novi Nur Hayatti Department of Management, University of Trunojoyo Madura Mohammad Arief Department of Management, University of Trunojoyo Madura M. Alkirom Wildan Department of Management, University of Trunojoyo Madura ABSTRACT The aim of the paper is to exploring the impact of Partnership Program to the Marketing Capabilities On Fostered SMEs. Specifically, this paper focuses to investigate and understand an event or problem that has occurred by collecting various information which is then processed to obtain a solution to the problems uncovered can be resolved. The method of this study used a descriptive qualitative. Our analysis are based on data from 4 Fostered SMEs owners and 1 informant. The result suggest that the Partnership has not been effective against marketing capabilities. Our finding indicated that there's no training to the fostered SMEs from SOEs to increasing their marketing capability, specially in monitoring and training activity. We argue that its contrary to the regulation concerning the partnership program from government. Therefore, we recommendation for a SOEs to develop and supervise the business activities of Fostered SMEs and training on marketing by focusing on Digital Marketing and Branding. Finaly, this paper also reported for the future research. Keywords: Partnership Program, SMEs, SOEs, Marketing Capabilities INTRODUCTION Many empirical studies has shown that SMEs are believed to spur economic growth, a source of innovation, and can contribute to the country and to create new jobs (Aziz & Rusland, 2009). But, another empirical research has shown that it's not easy to developed of SMEs. There's many reasoning why it happened, such difficulty for SMEs to obtaining a capital, a low quality of human resources, high preasure for competitiveness and low marketing access (Indonesian Banking Development Institute, 2015). Similarly, Aziz & Rusland, 2009) show that there's two main problem for SMEs. First, they has a low quality of human resources. Second, the limitation on productive resources, specially on marketing, capital, and technology. Based on Article 66 of Law No. 19 of 2003 states that a government can provide special assignment to SOEs to perform the functions of public benefit with regard to the purpose and objective of SOEs. Furthermore, an Article 88 confirms that SOEs should allocate the net income for purposes of developed small business and community. One of the recommendation to solve the problems of the community economy and to increasing the role of SOEs is the implementation of partnership program. That program noted on ministerial regulation of SOEs No. PER-05/MBU/2007. The point of that regulation highlight about the intent and purpose of SOEs to the establishment, whereby they not only the pursuit of profit, but fell