Indonesia Labour Force situation in person, by age and education - - PDF document

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Janti Gunawan

INDONESIA ¡GREEN ¡ENTREPRNEURSHIP ¡

YOUTH REPRESENT 32% of the labour force Growing number of educated labour force in Indonesia Source: Ministry of Manpower & Transmigration (accessible from http:// pusdatinaker.balitfo.depnakertrans.go.id/)

• 2,000,000

4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 ≥ 65 ≤ Junior high school Senior High School University

Indonesia Labour Force situation

in person, by age and education

(Feb 2012)

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Indonesia Unemployment

in person, by age and education

(Feb 2012)

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 ≥ 65 ≤ Junior high school Senior High School University

Source: Ministry of Manpower & Transmigration (accessible from http:// pusdatinaker.balitfo.depnakertrans.go.id/) 71% of unemployment are youth (5.4 million people), 51% of them are educated (senior high school and above)

Indonesia Youth Employment Network Program

Youth employment policy Skills for employability Apprenticeship Entrepreneurship KNOWLEDGE SHARING

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Challenges

• Quantity, small target
• Quality (top down)
• Cost
• Delivery (Location)
• Flexibility
• Sustainability

Example of Indonesia Organization Structural Challenge

NATIONAL

Ministry of Manpower & Transmigration Ministry of Education & Culture Ministry of Youth & Sport Ministry of Cooperative & MSMEs

East Java

PROVINCE

Office of manpower, transmigration & population Office of Education Office of youth & Sport Office of Cooperative & MSME

Sidoarjo District

Office of SOCIAL & MANPOWER Office of Education Office of youth, Sport & Tourism Office of Cooperative & MSME

Probolinggo District

Office of manpower Office of Education Office of youth & Sport, Culture and tourism Office of Cooperative, Energy and Mineral

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Governance Challenges

• Institutional challenge
• Capacity challenges
• Public service challenges
• Budget challenges
• Representativeness challenges
• Monitoring and Evaluation challenges

!

INDONESIA GOVERNMENT STRATEGY:

Gerakan Kewirausahaan Nasional (GKN) = NATIONAL MOVEMENT FOR ENTREPRENEURSHIP, include 13 ministries (e.g. Ministry of education, ministry of SME and Cooperative, Ministry of Youth and Sport) , and non government institution (private and state owned enterprise), starting in 2010

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ILO ¡EXPERIENCES ¡in ¡INDONESIA ¡

• 1. JOY (Job Opportunities for Youth): 2008-2010

Local Economic Development (Biogas, Cut flower, Ecotourism)

• 2. EAST (Education and Skills trainings for youth

employment): 2006-2010 Schools & Vocational training center, BDS Development Entrepreneurship modules (KAB, SYB, 4in1)

• 3. PELAGANDONG (Realising minimum living standards for

disadvantaged communities) : 2010-2012

!

INDONESIA CHALLENGES:

• Entrepreneurship business support system has not equally

developed

• The entrepreneurship program are not well coordinated (policy,

incentives, support, target group, location) because of various commitment of stakeholders

• Need to address unemployment, poverty reduction, inequality, and

environmental issue

• Need to pilot: GREEN ENTRPERENEURSHIP
• Specific sector to ease the coordination and scale up / promotion

12/13/12 6 ENTREPRENEURSHIP PROGRAM:

1. To create new entrepreneurs through training and coaching 2. To create potential clients for banks, and promote Green Banking 3. The intervention is channeled through university incubators 4. The program is piloted in 7 Indonesia Central Bank regional offices, 2

• ut of them focus on GREEN Entrepreneurship

– (2012) Provide training on how to start business – (2013) New entrepreneurs can implement business plan and do financial record keeping – (2014) New entrepreneurs’ business are registered, and can recruit at least 1 employee

INDONESIA GREEN ENTREPRENEURSHIP PROGRAM Target YOUTH & GREEN ENTREPRENEURS to PROMOTE DECENT WORKS

INDONESIA ¡GREEN ¡ENTREPRENEURSHIP ¡ PROGRAM ¡(2013-­‑2015) ¡ ¡

• 1. Pilot is underway (Sept 2012 – June 2013)
• 2. Focus on START YOUR GREEN BUSINESS
• 3. In 6 sectors that can potentially reduce CO2 level,

address international concerns, create employment and equal opportunity, and facilitate better policy alignment. The sectors are Green transport, Waste Management, Green Energy, Creative Industry, Ecotourism, Food security

• 4. Develop the capacity of trainers (management &

technical) to train and coach

• 5. Develop the network to support the implementation
• 6. Promote green policy at national, provincial and local

levels

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Stages ¡of ¡Indonesia ¡IGEP ¡(pilot) ¡

• Adopt Green Business Option (China), and Develop

Indonesia Start Your Business Module

Module development

• Training of Trainers, Call of interest

Preparation:

• BI program (2 regions and potentially 4 regions will

be included)

• 2 pilot universities (ITS, Undip/IPB)

Piloting

• 2013
• Ministry of Youth and Sport program at 41 university incubators
• Ministry of Education through young entrepreneurship program,
• Align to SOE and prviate CSR program for financing, technical asistance, and networking

Launching the project

• e.g. Green business finance law (to response to

law no.40/2009 on access to finance for new entrepreneur)

Institutionalization

PROMISE IMPACT: Promoting MSME’s access to finance and green productivity

2 ¡Loca@on ¡, ¡2 ¡Sector: ¡West ¡Java ¡for ¡Tex@le ¡and ¡Garment, ¡and ¡East ¡Java ¡for ¡Food ¡and ¡ Beverage ¡ ¡ Target ¡group: ¡Micro ¡and ¡Small, ¡in ¡a ¡clustered ¡industry ¡ DEMAND (SME) SUPPLY FINANCIAL INCLUSIVE Green ¡produc@vity ¡ Entreprneeurship ¡ Financial ¡Literacy ¡ BDS ¡development ¡ Product ¡ Development ¡ Capacity ¡ building ¡ MICROFINANCE POLICY AND SOCIAL PERFORMANCE MEASURE DEVELOPMENT

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¡ FOR ¡MORE ¡INFORMATION ¡ ¡ JANTI ¡GUNAWAN, ¡EMAIL: ¡JANTIGUNAWAN2010@GMAIL.COM ¡