1. The Role of Social Capital to Strengthen
Community Based Organization in
Indonesia
Study Case: PNPM Mandiri Perkotaan
(Urban Poverty Reduction Programme)
Tomy Risqi
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2. Social Capital and CBOs
CBOs :
• commonly known as community organizations
• part of civil society and non profit
• operate within a single local community
• subset of the wider group of nonprofits
• often run on a voluntary basis
• are self funded
• has many variations in terms of size and organizational
structure.
• Some are formally incorporated, with a written
constitution and a board of directors (also known as a
committee), while others are much smaller and are
more informal
CBOs are qualified when they are able to maintain social
capital to contribute to their work to improve community life
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3. Ecological Level of Social Capital
1. Micro trust among individuals and social connections and
participation
2. Mezzo-community trust on CBOs ; community participation in
programs and project; community mobilization
3. Macro-trust across organization with common ties (coalition);
linkage with larger society; new resources brought to community,
mobilization across to community (Alejandro Molina, Technologist,
Educator, Activist at Dr. Pedro Albizu Campos High School on Jul
26, 2009)
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4. The Importance of Social Capital :
correlate with Social Entrepreneur
1. Associated with better overall health (Rose, 2000; Wilkinson, 1996,
1997)
2. Recognizes the importance of informal social interactions as having
potential to engender trust and to communicate and enforce norms.
(Putnam, 1995)
3. Makes group action possible e.g. facilitates coordinated action
among individuals. (Coleman, 1990; Putnam, Leonardi & Nanetti,
1993)
4. Social entrepreneurship is non profit activities to stimulate, energize
and encourage communities better (Gregory Dees ; 2012, Jim Ife
2007)
5. Social entrepreneurs (also known as community development) are
volunteer which organize entrepreneurship activities in communities
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5. The Role of CBOs and CSO in
development
 States increasingly support CBOs and CSOs who
are taking on welfare roles for which they were
initially responsible. Many states rely on service-oriented
NGOs to deliver services faster, more
efficiently, and in greater numbers to “local”
community members.
 Putnam and Fukuyama articulate their
understandings of how, more precisely, the density
of associational life in civil society leads to
enhanced democratic participation and economic
well-being
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6. Social Entrepreneur in Indonesia 1
Indonesia hasn’t had social entrepreneurship policy and regulation
Social entrepreneurship appears and grows up within communities
National Development Midterm Plan (RPJMN) 2010-2015 and
NDMP draft 2015-2019 only mentions innovation in economic
aspect
Since 2010, Indonesia establish National Innovation Committee
under President task force till now
Social entrepreneur similar with CSR in corporation level.
Indonesia regulate CSR; in UU No.40 tahun 2007 about profit
company
CSR practices is being scaled up to support the achievement
national development Including Millennium Development Goals
(MDGs)
Government have been synchronizing CSR policy related to
national development plan, implementation and reporting
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7. Social Entrepreneur in Indonesia 2
GOI provide a lot of policy for Indonesian social
entrepreneurs even limited such as :
1. Develop volunteer community and network in several
National Program like PNPM Mandiri
2. Facilitate coalition with International institutions, multi
donor trust fund, NGO, academician, and corporation
like UNDP, ASEAN Community, Kopernik, GEPI etc)
One of the most largest entrepreneur forum is Global
Entrepreneurship Program Indonesia’s (GEPI)
ongoing commitment to support entrepreneurship
ecosystem including social enterprises with
outstanding social or environmental impact,
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8. National Innovation System OECD concept
version
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9. System innovation Influenced by some
factor
(Herawan 2010)
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10. Sosial Entrepreneurship Research
The research result; 140 people of 13 town in
Indonesia said if PNPM Urban social activity involved
existing volunteer/social worker (93,6%)
They worked in community as enabler base on social
capital = solidarity, contribution, reciprocity and trust
Trust develop network volunteerism to organize
working group among CBOs and partnership
Partnership with knowledge sharing improve social
worker/entrepreneur ability; in innovation, creativity
and vision
Social entrepreneur working in community
development; helping a community to establish
welfare (Jim ife; 1997 ; 53)
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11. Indicator of High Quality CBOs in social activities
 developed by existing group/community (14%) which
ability maintain social capital
 Helping community; provide resources and initiatives to
improve education, health care and income
 Easy to mobilize contribution; in kind or in cash
 Effective; target accuracy perception (97 %) , satisfactory
(87%)
 Linkage with larger society, get trust across organization
with common ties (coalition), partnership and collaborate
with Local Government (42,9%) , NGO (1,4%) and market
(2,1%)
 Partnership- shared knowledge will sharpen creativity and
improve innovation which is an entrepreneurship basic
concept; such as recycling product (modern waste
11 reduction), batik (creative industry ), snack 9/9/2014

12. The Role of Social Capital to Strengthen/Fortify CBOs
Volunteerism
Entrepreneurship
Social
Capital
Use Existing
institution
Assume loan
as stimulant
Trust across
organization
with common
ties
Networking
ability
High Quality
CBOs
High Quality
CBOs
High quality
CBOs
High Quality
CBOs
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13. From Social Capital to Volunteer Network
 Volunteer connect people in every CBOs and
communities and then make them connected become
CSOs
 CSOs as voluntarism association, vibrant associational
life is necessary for a well-functioning democracy and
economy. (Larry Diamond)
 In CSOs; Volunteer linkage CBOs with large society, get
trust across organization with common ties (coalition),
partnership and collaborate with Local Government and
market
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14. Volunteer and entrepreneurship
1. Volunteer Linkage among communities support
development progress well and obtain development
target precisely
2. Partnership between CBOs-LG will sharpen
volunteer innovation and social entrepreneur
creativity
3. Volunteer network which developed by PNPM
Urban can institutionalized shared knowledge
culture, problem solving communities issues, basic
needs issues,
4. Volunteer competency as social worker and local
community development will improve to scale up
social entrepreneurship widely
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