VDM Lehn Verena: SME Promotion Activities in Indonesia

This study was conducted by author Verena Lehn in cooperation with the GTZ Regional Economic Development program in Central Java in Indonesia. Within this program GTZ cooperates closely with the public sector, businesses and NGOs to create the conditions for economic growth and employment generation. The promotion of Small- and Medium-Sized Enterprises (SMEs) is one of the components within the program. The value chain approach focuses on improving the competitiveness of companies within chosen sector. The market for raw rattan is currently experiencing an imbalance of demand and supply. Even though a constant high amount of harvestable raw rattan exists, the rattan furniture industry experiences a lack in the supply of raw rattan. The objective of this study is to define the value chain of raw rattan, indentify its bottlenecks and offer possible solutions to improve and secure the supply of raw rattan. The solutions introduced in this study are drawn from the theoretical framework, initiatives already under consideration from development organisations, NGOs or the government in Indonesia and various best practices found in other countries.