Out-Wall Incubation Program In Order To Escalate Women Productivity in Talang Kedondong Village – Pa
Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatra Province

A. Problem Analysis

 1. What was the problem before the implementation of the initiative?
Palembang City is populated by 1,455,284 residents consisting of 49.96% women (726,988 residents) and 50.04% men (728,296 residents). The absolute number of the working age population known to reach 1,051,449 people (72.25%), with the proportion of 531,461 women (50.55%) and 519,988 men (49.45%). However, the proportion of female workers (29.5%) is much smaller than male workers (70.65%). Some reason caused this factual condition include the low level of education, the lack of access to employment, the low access to technology, babysitting activities, and spouse permission dismissal. Most women residents (90% of total population) in Talang Kedondong Village who are in their productive age (residing in the neighborhood (RT) 28, 42, 44, and 67) do not work. 70% of the spouses are daily laborers, having monthly income as low as the average of IDR 1,200,000 (around USD 120) based on the 2010 data. Those families, with the rate of per capita income of IDR 300,000 (USD 30), have to fund the average per capita expenditure of IDR 624,000 (USD 62.4), covering all basic needs of food, health, education, clothing and proper shelter. The traditional culture and tradition which limits the women’s responsibility to only deal with household finance matters and babysitting kids at home surely aggravates their desire to work in order to support the family’s income. While, on the other hand, those women actually have the potential to be home entrepreneurs, perpetuating extra income for the family without having to leave the house. One of the public services for creating such entrepreneurs is business and technology incubation service through coaching, mentoring, and entrepreneurial development activities focusing on researched-technology based business development. Almost all of the services are conducted at college campus and R&D institutions. The absence of such institution in rural areas resulted in the unavailability of the rural residence to attend the entrepreneurial program and activities. Regarding the issue, it is important to create what-so-called virtual incubation institution that does not even need such formal institutions to be built in the region.

B. Strategic Approach

 2. What was the solution?
Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatera Province initiated a project to develop a gender-responsive public services in order to overcome the underprivileged families and have an impact on improving the welfare of the family. The main target women from unprivileged families in Talang Kedondong Village. The main purposes of this initiative are: 1. To increase the working-aged women productivity; 2. To increase women's access to employment; 3. To improve women's access to public services; 4. To increase women's access to technology; 5. To improve women’s performance in regional development. There had been several discussions involving three main parties of innovation including academia, government authorities, and entrepreneurs in accordance with the theory of the triple helix to address the women empowerment issue, resulting in the establishment of Out-Wall Incubation program to promote the entrepreneurial women program. Strategies that have applied are as follows: 1. Stakeholders Synergy Activities Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatera Province built a synergy with the various stakeholders of the elements of the academia, entrepreneurs, and government authorities as well as local community leaders. Meetings conducted to obtain agreement on cooperation in supporting the service. The companies were also encouraged to support the program through their Corporate Social Responsibility (CSR) program by providing assistance at the initial phase of the whole process. 2. The utilization of the modest researched-technology results from academia and researchers. 3. The implementation of participative service to ensure that the program suits the public needs and interests. A team identified the factual problems in the village and then offered a solution of the Out-Wall Incubation Program to overcome such issues. The commitment was agreed in the form of the use of the program to support the growth of well-packaged creative-rubber-handcrafts industry. 4. The optimization of the women’s spare time to conduct productive economical activities. 5. The local-based transfer of technology. The transfer of technology was done by conducting local trainings starting from the initial phase to the final phase when the products are ready to be marketed. This method surely reduce the cost of technology transfer process. 6. The continuing assistance to cover and overcome any obstacles in the development of the program. This service was packaged with 3-year-assistance, including technical, entrepreneurial, and developmental matters.

 3. How did the initiative solve the problem and improve people’s lives?
The "Out-Wall Incubation" initiative is very unique, creative and innovative in addressing the women empowerment issues in terms of: 1. Implementing the theory of the triple helix system to overcome the unprivileged women issues; 2. The synergy of all stakeholders to collaborate corresponding basic tasks, functions, and resources they have to provide for gender responsive public services in order to achieve a common goal; 3. The unexclusive state of R&D institutions that store the results of their researches in the library, journal or academic seminars. They apply the results directly to communities; 4. The utilization of modest researched-technology results to optimize the women’s spare time to improve their productivity; 5. The program applies the “out-wall” technique providing more convenience for women to gain the access they need (public service, technology, and employment information) from home; 6. The proactive and participative service, by implementing the mentoring activities to ensure the independence of the business in the future.

C. Execution and Implementation

 4. In which ways is the initiative creative and innovative?
The Out-Wall Incubation program (first initiated in October 2010) has been done through several steps including: 1. Preparation. a. Conducting meetings with target audiences to do: 1) identification of the problem, 2) identification of potential, 3) identification of opportunities, 4) service offering. b. Conducting meetings with researchers to identify the modest researched-technology results to be utilized to support the service offered to communities. c. Holding coordination meetings with all stakeholders to synergize the appropriate resources required for the program. The output of this meeting was the establishment of a shared commitment among stakeholders on the goals to be achieved and the responsibilities to bear. d. Conducting meeting with the target group to present an action plan of the program. The output of this meeting was the commitment that the project's success is a shared responsibility. It is believed that the success of the project will address the women empowerment and the impact on the improvement of the welfare of the family. 2. Implementation a. Transfer of technology Conducting trainings consisting of several stages with some substances including the introduction to materials and equipment, practice trainings on the making of rubber-based-crafts such as key chains and fridge patches, trainings of crafts-designing, and trainings of computer operations. b. Accompaniment (Mentoring) Holding counseling and coaching activities on product-quality control and entrepreneurship. 3. Monitoring Monitoring is done through visitations and direct observation to production sites and sales outlets. 4. Evaluation. The evaluation is conducted annually to determine the impact of the service that has been given to the improvement of public services and improving the welfare of the family. Evaluation was conducted through qualitative studies that may explore existing constraints for future reference. 5. Accompaniment for improvement. Assistance activities carried out in the target area through field visits and mentoring through the medium of telephone communication. The two main activities are: a. Counseling and coaching for business and products improvement;. b. Transfer of technology for new products creation (prepared for SEA Games event) 6. Replication The replication process started in Ogan Ilir Regency, Banyu Asin Regency, Ogan Komering Ulu Regency, and other areas in Palembang City. The process began in 2011 and continued in 2012 in Ogan Komering Ulu Selatan Regency and Musi Rawas Regency.

 5. Who implemented the initiative and what is the size of the population affected by this initiative?
The stakeholders of the initiative consists of four groups (elements), namely: 1. Research Institute. a. Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatera Province as local government agencies covering duties of: 1) coordinator, 2) facilitator, 3) technology intermediaries, 4) assistant, 5) monitoring agency, 6) evaluator, and 7) cost provider. b. Research and Standardization Agency (BARISTAN) of Ministry of Industrial Affairs in Palembang City that is in charge of preparing technology research investigators in the agency. c. Technology Application and Assessment Agency as the technologies provider to diversify the products. 2. Businesses a. Indonesian Rubber Companies Association (GAPKINDO) as the provider of rubber materials; b. PT Batu Bara Bukit Asam, as the provider of the following through the CSR program: 1) production equipment, 2) the gate at the location driveway location, and 3) retraining financing, and 4) consumables; c. PT Bank Sumsel Babylon, as the provider of displaying tools in several places through the CSR program. 3. Government. a. Office of Industrial Affairs and Trade, providing assistance in 1) promoting the products in exhibitions events, and 2) marketing the products; b. Office of Cooperatives and SME, providing assistance in: 1) financing the comparative study, 2) devices provision, 3) facilitating the establishment of institutions; c. Community Leaders, Municipality Head, and District Head; d. Ministry of Research and Technology, providing incentives to fund the Pilot Project. 4. Non-Government Organizations. Indonesian Association of Young Entrepreneurs of South Sumatera as Entrepreneurial Resources.
 6. How was the strategy implemented and what resources were mobilized?
The project is supported by the resources together from all stakeholders involved. a. Human Resource 1. Chairman (1 person); 2. Monitoring and Evaluation Team (3 people); 3. Entrepreneurial Team (3 people); 4. Technology Transfer Team (4 people); 5. Institutional Team (2 people); 6. Collaboration and Partnerships Team (2 people); 7. Capacity Building Team (5 people); b. Technical Resources 1. Research and Standardization Agency (BARISTAN); 2. Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatera Province; 3. Technology Application and Assessment Agency (BPPT). c. Financial Resource 1. The total initial fund of IDR 150,000,000 (around USD 15,000) in 2010 from the Government of South Sumatera Province through Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatera Province, the Office of Industrial Affairs and Trade, and the Office of Cooperatives and SMEs; 2. The total aid of IDR 330,000,000 (USD 33,000) in 2011 from PT Batu Bara Bukit Asam Tanjung Enim, Ministry of Research and Technology, and PT Bank SUMSEL BABEL. The fund for replication was prepared by the government of South Sumatera Province in the amount of IDR 500,000,000 (USD 50,000); 3. Mentoring fund in 2012 in Talang Kedondong Village was IDR 120,000,000 (USD 12,000). The fund for replication process in 2012 was IDR 536,800,000 (USD 53,680); 4. Personal-owned tools from the participants for the production process.

 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
There are 5 successful outputs supporting the success of this initiative: 1. Increased productivity and employment for low-educated women who are able to master the technology and business production (20 people in 2010, 40 people in 2011, 60 people in 2012, and 90 people in 2013); 2. Improved gender responsive public services for unprivileged women through the utilization of researched-technology results; 3. Increased access for women to technology by the mastering of computer operations and internet using; 4. Improved infrastructure and facilities supporting business women (road construction, gate building, production tools provision, displaying tools for products); 5. Increased stakeholder collaborative networks to escalate women empowerment and productivity (there 9 mutual cooperation as the legal foundations for various resources aid and grants from 2010-2011)

 8. What were the most successful outputs and why was the initiative effective?
Following activities have been done to monitor the progress of the program: 1. Conducting regular visits (bi-weekly) to ensure that program is done according to scheduled plan. Findings or problems encountered will be reported to the Team Leader to be discussed. The results of the discussion should be followed up immediately for required fixes or improvements; 2. Conducting monthly meeting with target groups, held by Monitoring and Evaluation Team to accommodate the complaints and aspirations in order to monitor the inter-cooperation state the problems they face. Experience sharing are also done in the events; 3. Accommodating communication and media complaints via telephone. Monitoring is also done through the medium of telephone communications at any time. The women of the target group can contact all members of the team at any time, and vice versa, to monitor progress and activity constraints. Communication by telephone is very effective because it can be done at any time as needed. 4. Conducting monthly coordination meetings with stakeholders to present the results of monitoring activities. 5. As for evaluating the project, the event is conducted through interviews in quantitative and qualitative method. The results of the evaluation are discussed in stakeholder meetings. The whole summary will be useful for future reference and planning.

 9. What were the main obstacles encountered and how were they overcome?
The main obstacles encountered are grouped into two categories: 1. Internal Constraints a. The personal preference of the women to stay with old activities they had been doing due to the traditional perception of men-responsibilities of earning a living; the solution that has been done is to provide counseling and motivational mentoring to encourage the women to participate in improving the welfare of the family. b. The low entrepreneurial spirit of the women resulting in less persistence in capturing opportunities, conducting promotion, and marketing the products; the solution is to give continues Achievement Motivation Training and entrepreneurship basics training. c. The low creativity of the women in product designing; the solution is to provide designing training and to encourage them to attend several exhibition to broaden their knowledge and perception. d. The lack of independence of the women; the solution is to conduct regular and repeated visits to build and improve their confidence and independence. 2. External Constraints a. There are still many cases of spouse-permission dismissal for the woman; to overcome such issue, the sharing of information are often conducted. b. The lack of tolls’ productivity to serve the 3-dimensional products; c. The weak bargaining position of the women as entrepreneurs causing the distributors to often take double advantage on them; the solution is to receive direct orders for the products either online, direct meeting, or through printed media.

D. Impact and Sustainability

 10. What were the key benefits resulting from this initiative?
There are some very significant impacts from this program implementation: a. Changes in public service delivery: 1. More proactive Business Incubation Technology service; 2. Easy public access to Business Incubation Service outside the physical institutional buildings; 3. More implemented research results from academia to communities; 4. More transparent Business Incubation Service gaining more public trust. b. Positive impact on society 1. The impact on women's access to technology Prior to this initiative, a group of women do not know and reach out to technology so they cannot take advantage of existing technology. After the implementation, the technology has been utilized for the production of rubber processing, operating computer for business management, as well as performing simple bookkeeping to record the flow of funds; 2. The impact on employment opportunities and increased productivity. Prior to this initiative, working-age women had been very unproductive. After the implementation, a group of working-age women are able to use their spare time to produce an average of 20 products daily. 3. The impact on family welfare. Prior to this initiative, most working-age women in Talang Kedondong Village were so dependent to their husbands. After the implementation, the women are able to support their family income. Assuming the productivity rate in regular days is 20 products with the price of IDR 5,000 (USD 0.5), each woman can earn roughly IDR 2,500,000 for 25 working days. For certain occasions, the numbers are absolutely doubled. This fact also improve the per capita income of the residents to the number of IDR 911,000 (USD 91.1). 4. The impact on Women Self-Actualization Prior to the initiation of this project, most of the women were unable to actualize themselves. They just get together with the neighbors in a social gathering activities in the village. After the implementation, they are able to: a. Broaden their knowledge and perception by attending several local and regional craft exhibitions; b. Conduct a comparative study to Yogyakarta to gain more knowledge and experiences from many successful artisans; c. Share their experiences in many entrepreneurial events held by the initiators; d. Receive official and personal public visits from other regions and provinces.

 11. Did the initiative improve integrity and/or accountability in public service? (If applicable)
The replication processes have been conducted in several provinces including Central Java, South Kalimantan, East Kalimantan, Banten, West Sumatera, Bengkulu, Jambi and Maluku. Some national-level awards have also been received, including: 1. Prayogasala Science Award in 2011; 2. Budhipura Science Award in 2012 (Institutional Category); 3. Budhipura Science Award in 2013 (Networking Category); 4. Budhipura Kencana Science Award in 2014; 5. TOP 33 Best Public Services Innovation Award in Indonesia in 2014 There are some aspects which have been prepared to ensure the implementation of replication, namely: 1. System. The replication process is done by implanting the initiative into Local Innovation System of South Sumatera Province on the sub-system of Research and Development Result Utilization; 2. Regulation. In order to ensure and guarantee the sustainability of the program, the government authorities have issued following regulations: a. Decree of the Head of BALITBANGNOVDA of South Sumatera Province on the Out-Wall Incubation Program Team; b. Decree of the Governor of South Sumatera on Out-Wall and In-Wall Incubation Program; c. The Regulation of the Governor of South Sumatera on Strengthening Local Innovation System of South Sumatera; d. Decree of the Governor of South Sumatera on the Implementation of Local Innovation System Reinforcement Roadmap. 3. Institutional. Institutionally, the Out-Wall Incubation Program is the sole responsibility of BALITBANGNOVDA of South Sumatera corresponding to its official duties and functions. Thus, there is no trouble to prepare the budget for replication activities. 4. Financing. The funding for the program in the rural areas are financed through Innovation Village Fund and Model Village Fund taken from the local budget of South Sumatera Province as follows: a. In 2011, a total of IDR 500,000,000 (USD 50,000): 1. Talang Keramat Village in Banyuasin Regency focusing on agricultural technology spent IDR 200,000,000 (USD 20,000); 2. Baturaja Permai Village in Ogan Komering Ulu Regency focusing on Foodcessing Technology spent IDR 100,000,000 (USD 10,000); 3. 5 Ulu Municipality focusing on food processing technology spent IDR 100,000,000 (USD 10,000); 4. Lubuk Rukam Village and Kandis I Village in Ogan Ilir Regency focusing on herbal medical technology spent IDR 100,000,000 (USD 10,000). b. In 2012, a total of IDR 606,800,000 (USD 60,680): 1. The Innovation Village of Tanjung Sari in OKU Selatan regency (a remote area with 8-hour-land-trip from Palembang City) spent IDR 46,800,000 (USD 4,680); 2. 5 Ulu Municipality in Seberang Ulu I District in Palembang City focusin on food processing technology spent IDR 50,000,000 (USD 5,000); 3. Buay Rawan District in OKU Selatan regency focusing on food processing technology spent IDR 95,000,000 (USD 9,500); 4. Palembang City focusing on food quality improvement spent IDR 45,500,000 (USD 4,550); 5. Mardiharjo Village in Musi Rawas Regency spent IDR 300,000,000 (USD 30,000); 6. Post Innovation Fund IDR 70,000,000 (USD 7,000). c. In 2013, a total of IDR 765,000,000 (USD 76,500): 1. 75 villages in OKU Selatan Regency spent IDR 525,000,000 (USD 52,500); 2. Buay Rawan District in OKU Selatan Regency focusing on post-harvest fruit processing technology spent IDR 100,000,000 (USD 10,000); 3. Post innovation Fund IDR 140,000,000 (USD 14,000).

 12. Were special measures put in place to ensure that the initiative benefits women and girls and improves the situation of the poorest and most vulnerable? (If applicable)
Lessons learned from the initiative are: 1. Improving the quality and coverage of public services have to do with real action, consistent and ongoing. It requires strong leadership as a driving force of service and a solid and dedicated team to carry out the competitive service and satisfy customers; 2. Designing public services should be empowering the community in order to bring together the expectations and needs of people with the ability and the resources they have. Public service involving public participation is very important and is guaranteed for success. Public participation can be built through a participatory planning to grow a shared commitment; 3. Public service improvement efforts should be designed with measurable performance indicators. The synergy and collaboration between all stakeholders are required in order to develop innovative entrepreneurship among target groups’ members. Trust among stakeholders is important in the success of the program. Communication and continuous mentoring is important to maintain relations of cooperation; 4. Women with low education from underprivileged families are able to master the technology and support the family income without having to leave their natural state as wives and mothers; 5. It is surely possible to change common and traditional perception of men are holding responsibility of earning a living for the family by providing equal opportunity to women to actualize themselves without ignoring their true destiny as women, wives, and mothers; 6. The monetary result of the initiatives shares great contribution to economic improvement of the family, as well as the region’s; 7. Accompaniment holds a very important role in sustaining the program and boosting the target groups’ members’ confidence as well as encouraging them with such beneficial entrepreneurship experiences and motivation. Future recommendation: 1. Despite the imperfection of the program, it seems obligatory to disseminate the replication process with more improvement and local adjustments in order to improve the local women productivity; 2. R & D institutions ought to broaden their chances of building mutual cooperation with stakeholders for providing the real service to communities, the real people who are in need of the technology and its research result advancement.

Contact Information

Institution Name:   Regional Innovation Research and Development Agency (BALITBANGNOVDA) of South Sumatra Province
Institution Type:   Government Agency  
Contact Person:   Ekowati Retnaningsih
Title:   Head of Regional Innovation Research and Developme  
Telephone/ Fax:   +62711374456 / +62711350077
Institution's / Project's Website:  
E-mail:   ekowati.retnaningsih@yahoo.com  
Address:   Jl. Demang Lebar Daun No. 4864 Palembang
Postal Code:   30137
City:   Palembang
State/Province:   South Sumatera

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