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

12/13/12 INDONESIA ¡GREEN ¡ENTREPRNEURSHIP ¡ Janti Gunawan Indonesia Labour Force situation in person, by age and education (Feb 2012) YOUTH 18,000,000 REPRESENT 16,000,000 32% of the labour force 14,000,000 12,000,000 Growing number of 10,000,000 educated labour force 8,000,000 in Indonesia 6,000,000 4,000,000 2,000,000 - 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 Source: Ministry of Manpower & Transmigration (accessible from http:// pusdatinaker.balitfo.depnakertrans.go.id/) 1

12/13/12 Indonesia Unemployment in person, by age and education (Feb 2012) 2,500,000 71% of unemployment are youth (5.4 million people), 2,000,000 51% of them are educated 1,500,000 (senior high school and above) 1,000,000 500,000 - 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/) Indonesia Youth Employment Network Program Youth employment policy Skills for Apprenticeship Entrepreneurship employability KNOWLEDGE SHARING 2

12/13/12 Challenges • Quantity, small target • Quality (top down) • Cost • Delivery (Location) • Flexibility • Sustainability Example of Indonesia Organization Structural Challenge Ministry of Ministry of Ministry of Ministry of Youth NATIONAL Manpower & Education & Cooperative & & Sport Transmigration Culture MSMEs Office of Office of East Java manpower, Office of Office of youth & Cooperative & transmigration & Education Sport PROVINCE MSME population Sidoarjo Office of Office of SOCIAL Office of Office of youth, Cooperative & & MANPOWER Education Sport & Tourism District MSME Office of Office of youth & Probolinggo Office of Office of Cooperative, Sport, Culture manpower Education Energy and District and tourism Mineral 3

12/13/12 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 4

12/13/12 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 5

12/13/12 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 out 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 6

12/13/12 Stages ¡of ¡Indonesia ¡IGEP ¡(pilot) ¡ Module • Adopt Green Business Option (China), and Develop development Indonesia Start Your Business Module Preparation: • Training of Trainers, Call of interest • BI program (2 regions and potentially 4 regions will Piloting be included) • 2 pilot universities (ITS, Undip/IPB) Launching the • 2013 • Ministry of Youth and Sport program at 41 university incubators project • Ministry of Education through young entrepreneurship program, • Align to SOE and prviate CSR program for financing, technical asistance, and networking • e.g. Green business finance law (to response to Institutionalization law no.40/2009 on access to finance for new entrepreneur) 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 ¡ FINANCIAL INCLUSIVE Product ¡ Green ¡produc@vity ¡ Development ¡ Entreprneeurship ¡ DEMAND SUPPLY Capacity ¡ (SME) Financial ¡Literacy ¡ building ¡ BDS ¡development ¡ MICROFINANCE POLICY AND SOCIAL PERFORMANCE MEASURE DEVELOPMENT 7

12/13/12 ¡ FOR ¡MORE ¡INFORMATION ¡ ¡ JANTI ¡GUNAWAN, ¡EMAIL: ¡JANTIGUNAWAN2010@GMAIL.COM ¡ 8