Enhancing the livelihoods of poor and near poor households is critical to Indonesia’s poverty reduction efforts. In rural Indonesia, most of the poor and near poor are self-employed in either agriculture or micro and small enterprises (MSEs), or both. Therefore, improving the productivity of MSEs is critical to improving the livelihoods of the poor – a core area of KOMPAK’s work to support local economic development.
Since 2017, KOMPAK has been partnering with local governments, start-ups and local producers – in this case, MSEs – to pilot an approach to enhance their ability to market and sell their products and services. This ‘Market Linkages’ approach assists MSEs to assess market opportunities and then design viable business options to respond.
KOMPAK is also working with Bappenas to integrate the lessons learned from these pilots to strengthen the local economic development components of the next national medium-term development plan (RPJMN 2020-2024).
An increased number of micro, small and medium enterprises, especially those involving the poor and vulnerable, have increased their productivity and market access.
In the recent years, there have been many poverty alleviation efforts to reduce the poverty rate to a single-digit. Among them are efforts by creating synergies between poverty programs, provision of equal social security to the people, channelling social assistance, granting substantial financial support and support to the village level, and other strategic measures aimed at pressing the poverty level to the lowest possible level.