Despite significant advancements in economic and infrastructure development aimed at promoting equitable growth and improving welfare in Indonesia, mainstream economic policy still falls short in achieving the goals of inclusive and sustainable development especially in rural areas. In response, there is a strong focus on village development, including innovations in village products and capacity-building training for local officials. FES plays a crucial role in facilitating progressive discourses on economic development that emphasize social and environmental sustainability. This includes addressing distributional justice, promoting inclusive growth, and mitigating the negative effects of climate change while ensuring that social considerations are integral to development efforts.
Village Fund allocated from the national budget remains an important source for villages in Indonesia. FES together with its partners have been working in different provinces to identify strategies to optimize the use of village fund in an inclusive, resilient, and sustainable ways. Training village apparatus, developing the best commodities of the village and advancing the marketing strategies through the village information system and improving the flow of produces in the scope of rural-urban linkage.
Encouraging young entrepreneurs is seen as one strategy to overcome current youth unemployment as well as a step to build a robust economic growth, job creation, and poverty reduction in the future. FES together with various ministries in Indonesia are working to create an ecosystem for youth entrepreneurship ecosystem from the strategic level such as business plan development to the practical capacity building programs for finance and management.
Tourism and cultural industries have become the backbone in regions in Indonesia, known as the super priority tourism areas. FES supported studies and policy advice focusing on the innovation and creativity aspect in these areas, particularly on the role of micro, small, and medium enterprises within the scope of rural-urban linkage with the neighboring areas.
Jl. Kemang Selatan II No. 2A Jakarta Selatan 12730 Indonesia
+62 21 7193711+62 21 71791358
info.indonesia(at)fes.deindonesia.fes.de
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