Context: The youth unemployment rate in Indonesia of 19.3 per cent in 2015 was more than three times higher than the overall unemployment rate. Entrepreneurship was first identified by the Government as a means to reducing unemployment in 1995 with the National Entrepreneurship Programme. Environmental issues are also a key concern in Indonesia, as the world’s third largest producer of carbon dioxide emissions brought about by palm oil production and deforestation. In recognition of this issue, Indonesia committed to reducing CO2 emissions by 26 per cent using its own initiatives and up to 41 per cent through international cooperation by the year 2020.
Implementation of programme/ initiative: Seeking to address employment and environmental issues in Indonesia, the International Labour Organisation (ILO), in partnership with local institutions, launched the Indonesian Green Entrepreneurship Programme. The main objective of the programme was to encourage and develop opportunities for green entrepreneurship in the country, particularly for young women and men. Urban and rural areas are both included in the programme and the focus is on six economic sectors: food and agriculture, renewable energy, tourism, waste management, transportation and creative industry.
Main challenges: Two of the main challenges the programme has encountered are a lack of coordination and the absence of a common roadmap regarding different entrepreneurship initiatives across Government ministries. ILO’s experience has also highlighted the need for access to finance to be integrated into successful green entrepreneurship programmes, which have been accomplished through partnerships with the Government, the private sector and microfinance institutions. It was found that sustained efforts and wider coverage were necessary to achieve a greater impact; this was facilitated through the integration of the programme into the national mid-term development plan.
Results achieved: The programme has developed a toolkit and training programme in Indonesian and English, with one universal training module, five sector based modules, one trainer module and 50 case studies. This has allowed 180 green entrepreneurs to be trained and start their own business. Moreover, 40 individuals have completed the training for trainers and 30 green entrepreneurs have started “after training support”. In addition, 100 youth have attended a capacity building lecture on green entrepreneurship.
Moving Forward: The need to maintain momentum and continue to expand the training to other parts of the country using the toolkit that was developed is seen to be essential to further success. Other countries, including Pakistan, have expressed interest in developing a similar product, so the process can be replicated outside Indonesia and more lessons can be shared.
Replicability: The Indonesian Green Entrepreneurship Programme supports the capacity building of individuals and institutions to create an enabling environment for young people to start and develop eco-friendly businesses. This programme illustrates the usefulness of creating a toolkit that can be utilized for self-development and the training of others. At an institutional level, the programme indicates that non-government entities can have a stronger impact when deep partnerships with the Government and the private sector are forged.
ILO’s Green Growth Knowledge Platform, available from: http://www.greengrowthknowledge.org/project/indonesian-green-entrepreneurship-program-igep
Date: September 26, 2016