The Role of CSR and Partnership Strategy in Improving Loyalty of PT Telkom Foster Partners in Indonesia Suparjiman 1 , Erika Nurmartiani 2 {suparjiman7762@gmail.com 1 } Politeknik Piksi Ganesha, Bandung, Indonesia 1 Universitas Sangga Buana YPKP, Bandung, Indonesia 2 Abstract. This study aims to look into the impact of CSR and partnership strategy on PT Telkom promote partner loyalty. The quantitative research approach employed is causality research, which will be based on the study objectives. Small and Medium Enterprises (UKM) that have received PT's Corporate Social Responsibility (CSR) program are the unit of analysis. Indonesian telecommunications company Telkom. Meanwhile, the owners and managers of the UKM company are the units of observation. In Indonesia, the population is made up entirely of SMEs whom PT Telkom helps. Therefore, SMEs that PT has directed are the prerequisites to be used as example units. Telkom has a two-year minimum contract. A total of 200 SMEs were randomly selected and distributed over seven regions, with proportional allocation based on the population of each region (Simple Random Sampling). Using Structural Equation Modeling, this analysis will address the research objectives (SEM). The findings of this study show that CSR and partnership strategy impact PT Telkom cultivating partners' loyalty. The partnership strategy more dominantly forms partner loyalty than CSR. Based on this result, it is recommended to manage PT Telkom, who manages the partnership program to develop a partnership strategy: trust, independence, agreement, commitment, and coordination. Besides, it is also necessary to develop CSR in development, utilization, distribution, and impact. Keywords: CSR, partnership strategy, partner loyalty 1 Introduction Small business is one of the businesses that are starting to be a great interest to people in Indonesia. Small business products vary widely, ranging from handicrafts, food, beverages, fashions, beauty tools, and many others. Every year the number of these business actors is increasing and scattered in various parts of the country. Small businesses also contribute to economic growth in Indonesia, with a value of up to 60%. In addition, this small business sector has a major contribution to the circulation of money in society because the amount is quite large, namely IDR 55.2 million. PT Telkom Indonesia is concerned about and committed to improving the community's quality of life, both economically and socially, by using monies from the company's profit share to enhance the economic and social conditions of the community surrounding the company's active region. BIS-HSS 2020, November 18, Indonesia Copyright © 2021 EAI DOI 10.4108/eai.18-11-2020.2311774