Box: Community Empowerment for Rural Development in Indonesia
The project is aimed at reducing poverty in 11 districts in six Indonesian
provinces by increasing the incomes of about 110,000 poor families beyond the
poverty line and empowering the rural poor to plan and manage activities that
affect their livelihood. This objective will be achieved through participatory
village planning and the formation of community-based savings and loan
organizations (CBSLOs), which will provide the rural infrastructure needed to
link the urban and rural areas.
Indonesia has about 4.3 million poor households, of which 0.5 million are
headed by women. One in every 10 households headed by women is poor.
Rural women in the project area contribute to economic development in major
ways through their involvement in agriculture, petty trading, and wage labor
activities. However, they are constrained by low wages and lack of access to
capital, skills training, appropriate technology, and market facilities.
The project aims to deal with these constraints. Women will compose half of
the membership of CBSLOs for microenterprise development, half of those who will
undergo capacity-building and leadership training, and half of the project
facilitators in the villages. The recruitment of women facilitators will create
job opportunities for women from the community.
Women's groups will be formed in the villages to take part in village
planning. Women will thus be able to identify the constraints on their economic
activities and livelihood and have their needs considered in the local
government's development plan. Women's participation in the village planning
recognizes women's important role in the village economy and community
The CBSLOs will provide women with access to microcredit from banks in the
formal sector for expanding their microenterprises or investing in new ones.
Women will thus be able to invest in both farm and nonfarm enterprises to create
productive assets. Through the urban-rural linkage component of the project
women's enterprises will gain access to marketing facilities.
Women will receive human development and leadership training to improve their
capacity to voice out their needs in village planning and in the operation and
management of CBSLOs. The CBSLO management committee will include a woman
Gender and development consultants will be recruited, women's NGOs will be
involved in project implementation, women will be given equal participation in
microcredit activities and in operation of CBSLOs, and a gender-disaggregated
monitoring system will be installed.