Indonesia is a transcontinental country with more than 17,000 islands. Located between the Indian ocean and the Pacific ocean it shares lucrative trade relations with various countries, primarily USA, China, Japan and Singapore with major exports in coal briquettes, palm oil, petroleum gas, cars and gold and major imports in refined/crude petroleum vehicle parts and telephones.
With a GDP of 1.159 trillion USD(2021) and GNI of 1059.51 billion USD(2020) Indonesia is one of the emerging market economies of the world. The pivotal aspect to notice here is that the crucial role in developing and sustaining the economy of Indonesia is played by the micro,small and medium enterprises(MSME) as 99% of the enterprises in the country fall into this category.
Though a substantially steady growth graph, Indonesia faces some internal challenges, the ones that might not seem a big hurdle at the moment but would amplify later to create some major loopholes in the economic functioning of the country as these are the fundamental growth seeds of any society;
- Micro and Small enterprises of Indonesia
- Women of Indonesia
Although there are a large number of MSMEs, the majority of micro enterprises do not employ adequate workforce, technology and lack proper financial backup. Most of the existing microenterprises turn out to have low productivity because of the following reasons:
- there is little or no technology uses
- the quality of products is poor
- they are functioning only in local markets
- they have limited access to financial advisors and expertise
- there is no liquidity to expand and
- some recipients may even use the funds advanced for purposes other than starting their own business.
Source:IFC 2016, Women owned enterprises in Indonesia
The inflation in 2001 caused 40% of Indonesia’s population living below the poverty line; the struggling for basic needs and refugee problems lead to a domino effect of socio economic problems, increasing the violence against women dramatically. Domestic violence/ violance by a close relative (↑40%) , rape (↑32%), trafficking in women and selling of girl child for sex and entertainment purposes were recorded by NGOs in their working areas. Owing to several discriminatory laws and traditions, women are often unemployed or engaged in risky and vulnerable work in the informal sector.
The proposed project focuses on amalgamating the two issues and tries to form a solution by creating an interdependence between the two. The project would promote self-employment and entrepreneurship which would enable women to break out of the cycle of poverty and inequality.
What is the rationale for the project? [Kindly establish the need for the project, your rationale for selecting the project location etc. Please mention valid source for any information or statistics used]
Micro Small Medium Enterprises play an important role in the socio-economic development of the country as it enables entrepreneurship amongst people and therefore it is often considered as a nursery for enhancing entrepreneurship and creativity amongst the youth. The MSME sector contributes not only towards the economical growth of an area but also provides employment opportunities to the local people. Considering MSMEs can help in reducing gender disparity and promoting equitable development, the proposed project would strengthen Micro
Enterprises to improve the local economy of the region along with empowering women in Indonesia.
Women constitute 51.2% (2011) of the labour force in Indonesia, hence mobilizing them through entrepreneurship development and training would empower them to start or grow their business. Necessary support will be provided to invoke in them to stand for their rights and have their own voice.
The project will strengthen the existing women owned microenterprises of Indonesia by attaching methods of extensive research and a well thought strategy (revised periodically) to expand the reach of these small businesses. Micro enterprises will benefit from this as they are labour intensive and various organisations and institutions such as UN Women, WGEF , World Bank Group etc. who specifically focus on the issue of Women Rights will assist with the required support both financially and at a community level as the world today believes that supporting women entrepreneurs is vital for economic growth. The project will utilise the key strengths of micro-enterprises and will help to develop:
- Human capital
- Social capital
- Financial capital
What is the project aim and objectives? [What is the purpose of the project? What are the key objectives? Please make sure the objectives are Specific, Measurable, Realistic and Time bound]
AIM: The project would promote self-employment and entrepreneurship to enable women to break out of the cycle of poverty and inequality in Indonesia.
- Objective 1. To publish a report on the status of women owned micro enterprises in Indonesia.
- Objective 2. To identify 50 women owned micro enterprises that will be strengthened through a series of capacity building exercises, collaboration and developing linkages.
- Objective 3. To promote women owned micro-enterprises through a series of advocacy and sensitization campaigns.
Who will benefit from the project and duration?
The project would benefit women in general by enhancing their knowledge on women rights, gender equality and would directly benefit 50 women owned micro-enterprises in Indonesia.
Through the project we shall be improving the overall performance of women owned micro enterprises in Indonesia.
The project will be carried out during a period of 18 months.