Chevron Indonesia and the Association for Advancement of Small Business (PUPUK) : Building Community Independency and Social Stability through Micro, Small and Medium Businesses in Garut, West Java
Chevron and the Association for Advancement of Small Business (PUPUK) partnered in a program called “Income Generation Project for Forestry Community” (IGP4Com) from 2009 to 2013. This program focused on economic empowerment in areas where Chevron operates, namely Samarang and Pasirwangi sub-districts, Garut Regency, West Java Province. The main beneficiaries of this program were mostly vulnerable groups, such as, housewives, farmers, and youth of 17-24 years old. The four intervention focuses were (1) development of integrated farming system, (2) strengthening of micro finance institution, (3) development of processing business and industry, and (4) community creative center (“Center”). The four interventions were interrelated and supported the business continuity by the community in the long run. In implementing the partnership, Chevron supported the funding, while PUPUK provided the training and technical advices on developing micro, small and medium enterprises (MSME).
As of the end of 2013, among other program’s achievements: (1) 278 housewives and farmers have received integrated farming training, (2) the Micro Financial Institution had gathered 800 members, with a distributed loan of Rp. 525 million, and 95% repayment success rate (3) more than 4,000 community members received training on MSME; and (4) the Center has successfully established 47 new business groups consisting of 675 housewives, 700 farmers, and 168 youth, and resulted in producing 125 kind of products from its nurtured groups, (5) transaction of nurtured groups has increased from Rp. 203 million in 2011 to Rp. 3 billion in 2013.
The success of their partnership was based on the nature of integrated activities, starting from farming, processing of agricultural product & handicrafts, packaging and marketing (through micro credit). In terms of program sustainability, Chevron and PUPUK have decided to develop integrated and eco-friendly centers for economic activity, such as strengthening the cooperatives, development of business center for processed food, and the development of Ciburial to be the first culture-based tourism village in Garut area. Based on the observation of both partners, the program also benefitted in reducing social unrest as the result of economic growth from the improved business either on-farm or off-farm owned by the community groups.
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