Country paper inclusive growth in indonesia by habe at hyderabad 2014

RURAL TECHNOLOGIES FOR INCLUSIVE GROWTH
H A R I S B U D I Y O N O
(Center for Research on Autonomy and Regional Develovement,
Faculty of Agribusiness, Islamic “45” University)
WAWA N M U N AWA R K H O L I D
(Ministry of Home Affairs, Republic of Indonesia)
Center for Research on
Autonomy
and Regional Develovement
Faculty of Agribusiness,
Islamic “45” University
Ministry of Home
Affairs,
Republic of Indonesia
C o u n t r y P a p e r - I N D O N E S I A
“Collaborative International Training Programme on Rural Technologies for Inclusive Growth”
Centre on Integrated Rural Development For Asia and The Pasific (CIRDAP)-National Institute of Rural Development (NIRD)
Hyderabad, India, February 18-27, 2014

A B R IEF PR OFILE OF IN D ON ESIA
A Brief Profile of Indonesia
C H A P T E R 1 .
21/02/2014 RURAL TECHNOLOGIES FOR INCLUSIVE GROWTH 2

MAP OF INDONESIA

According to the 2010 official
population cencus data, BPS-
Statistics Indonesia
(http://www.bps.go.id) :
• the population of Indonesia
totalled 237,641,326;
• those residing in urban areas were
118,320,256 (49.79 %) and
• in rural areas were 119,321,070
(50.21 %).
POPULATION

• Far from being small, Indonesia
is in fact a vast archipelago that
comprises 17,508 Islands,
which go to form a land mass
equating to 1,910,931.32
square km
(http://indonesiadata.co.id).
• This means that Indonesia is
the 19th largest country in
terms of land mass and it has a
high population density, too.
INDONESIAN TERRITORY
Indonesia located in Southeastern Asia,
archipelago between
the Indian Ocean and the Pacific Ocean

• In recent years, the country has
embarked on a program of family
planning awareness but that has
done little to slow down a
considerable population growth, the
number of population is projected to
reach around 254 million by 2020
and 288 million by 2050.
• The population of Indonesia in 2013
is already estimated at 250,585,668
with no signs of slowing, and this
represents a very sizable increase
from the official 2010 figures
(http://worldpopulationreview.com).

• Indonesia has transformed itself since
1998 into a relatively open, stable, and
democratic nation, underpinned by a
process of decentralisation as the
centrepiece of a wide-ranging programme of
institutional reforms
(http://www.developmentprogress.org).
• The political stability in Indonesia has
created a window of opportunity to improve
good governance in the country. Changes
within the Indonesian government and
changing relationships between the
government, civil society, and the private
sector are opening up new spaces for
negotiation.
POLITICAL STABILITY

• Cultural diversity of Indonesia it is a unique
and multicultural countries in the world.
Culture in each region developed along the
cultural diversity of the place or the other
tribes.
• Bhinneka Tunggal Ika is the official national
motto of Indonesia. The phrase is Old
Javanese translated as "Unity in
Diversity“. It is inscribed in the Indonesian
national symbol, Garuda Pancasila and it is
officially mentioned in article 36A of the
Constitution of Indonesia 1945.
CULTURAL DIVERSITY

• Traditional Indonesian music represents some sort of
uniqueness, mainly because of the varied instruments
used for the purpose. While performing an orchestra, as
many as 40 different musical instruments are played,
one of them is called Angklung.
• The angklung is commonly regarded as the most
popular and one of the oldest of Indonesian instruments.
In 2010, it was certified as intangible heritage by
UNESCO. It's one of the most intriguing wood
instruments, which relies on sustained resonance on
individual tubes that have their own unique resonant
frequency. The tubes are mounted on two larger bamboo
tubes.
• The instrument was created centuries ago by the
Sundanese people. The instrument, like all Indonesian
instruments, is always played as a part of a larger
arrangement.
TRADITIONAL INDONESIAN MUSIC

• Administratively, Indonesia consists of 33
provinces (five of which have special status),
399 regencies, 98 cities, 6.793 districts, and
79.075 villages. The provinces of Aceh, Jakarta,
Yogyakarta, Papua, and West Papua have
greater legislative privileges and a higher
degree of autonomy from the central
government than the other provinces. Each
province has its own legislature and governor.
• The provinces are subdivided into regencies
(kabupaten) and cities (kota), which are further
subdivided into districts (kecamatan), and
again into village groupings (either desa or
kelurahan).
NATIONAL ADMINISTRATION
C i t y L i v e l i h o o d
R u r a l L i v e l i h o o d

• Following the implementation of regional
autonomy measures in 2001, the regencies and
cities have become the key administrative
units, responsible for providing most
government services.
• The village administration level is the most
influential on a citizen's daily life and handles
matters of a village or neighborhood through
a lurah or an elected kepala desa (village chief).
• Furthermore, a village is divided into several
citizen groups (Rukun-Warga (RW)) which are
further divided into neighbourhood groups
(Rukun-Tetangga (RT)).
NATIONAL ADMINISTRATION (Continued)
The Best Village in Bali
A Citizen Group in
TanjungPinang

• The Gross domestic product (GDP) was
about 1.209 trillion US$ and the debt ratio to
the GDP was 26%. GDP per capita - current
prices is US$ 3,797 (2011 estimate). The
manufacturing sector was the economy's
largest portion and accounts for 46.4% of
GDP (2010), this was followed by services
(37.1%) and agriculture (16.5%)
http://www.gfmag.com.
• However, since 2010, the service sector has
employed more people than other sectors,
accounting for 48.9% of the total labor force,
this was followed by agriculture (38.3%) and
industry (12.8%). Agriculture, however, had
been the country's largest employer for
centuries.
NATIONAL ECONOMY

• Indonesia is in the 128th position, close to India
which is in the 132nd position among the world’s
business centers, according to the International
Finance Corporation and the World Bank.
• Indonesia has significantly improved in the areas
of startup time of a business, the procedures
involved in setting up a business, and the
construction permits from the previous years.
• Indonesia is also gearing up for a free-trade era,
the ASEAN Economic Community (AEC),
beginning in 2015. In every aspect, Indonesia
appears to be an emerging business hub in the
region.
• The projected Gross Domestic Product (GDP) rate
of Indonesia in 2013 is 6.4 per cent
http://www.travelandflavors.com.
NATIONAL ECONOMY (Continued)
T a n j u n g P r i o k P o r t , J a k a r t a

TOTAL BALANCE OF TRADE OF INDONESIA
Period : 2008-2013 (Value : Million US$)
Source: BPS, Processed by Trade Data and Information Center, Ministry of Trade
*) temporary data

• Since the 1970’s Indonesia has been
recording trade surpluses due to exports
growth. However, in 2012, the country
posted trade deficit, as exports fell due to a
slowdown in the global economy and surge in
imports.
INDONESIA ECONOMY'S TOTAL EXPORTS AND IMPORTS 2012
EXPORTS (VALUE : MILLION US$) IMPORTS (VALUE : MILLION US$)
190,031.83 191,681.00
By main commodity group (ITS) % By main commodity group (ITS) %
Agricultural products 23.9 Agricultural products 11.0
Fuels and mining products 39.9
Fuels and mining
products
25.7
Manufactures 35.9 Manufactures 62.8
By main destination % By main origin %
1. Japan 15.9 1. China 15.3
2. China 11.4 2. Singapore 13.6
3. European Union (27) 9.5 3. Japan 11.9
4. Singapore 9.0 4. European Union (27) 7.4
5. Korea, Republic of 7.9 5. Malaysia 6.4
http://stat.wto.org

IN C LU SIVE GR OW TH IN IN D ON ESIA
C H A P T E R 2 .

• Inclusive Development in Indonesia emphasizes on 4 (four) aspects :
 Infrastructure development: ensures national connectivity and helps less developed regions
catch up with more-developed regions particularly on the Java island;
 Universal education and access to health: addresses people’s basic needs;
 Poverty reduction programs: pro poor programs include the provision of subsidized rice,
cash transfers, and community development programs; and
 Microfinance schemes: help small and medium companies to access credit.
(Mari Elka Pangestu, 2011)
• However Elena Ianchovichina and Susanna Lundstrom (2009) mentioned that IG should focuses
on economic growth which is a necessary and crucial condition for poverty reduction. It should
also be inclusive of the large part of the country‟s labor force, where inclusiveness refers to
equality of opportunity in terms of access to markets, resources, and unbiased regulatory
environment for businesses and individuals.
• Inclusive growth refers both to the pace and pattern of growth, which are considered interlinked,
and therefore in need to be addressed together. The idea that both the pace and pattern of growth
are critical for achieving a high, sustainable growth record, as well as poverty reduction.
Inclusive Growth in Indonesia

• Indonesia's National Long-Term Development Plan 2005-2025 sets out the country's key aims in terms of
poverty reduction and development:
– Achieving equitable development that gives greater attention to those who are disadvantaged, including poor communities in
remote or disaster-prone areas;
– Increasing national food security and self-reliance based on local diversified food resources;
– Developing rural areas through the promotion of agricultural production and agro-industry, by building capacity,
developing infrastructure, and enhancing access to information, markets and financial services.
• The Government of Indonesia has also articulated a National Medium-Term Development Plan (RPJMN) for
2010-2014 with the declared aim of building a nation that is more advanced and prosperous, self-reliant, secure
and peaceful, democratic, and just.' The RPJMN has 11 national priorities:
– Governance reform;
– Education;
– Health;
– Poverty alleviation;
– Food security;
– Infrastructure;
– Investment climate;
– Energy;
– Environment and disaster management;
– Outer islands and conflict areas;
– Culture, creativity and technological innovations.
P O L I C Y

• The 2010-2014 National Medium-Term Priority Framework for
Agriculture focuses on the revitalization of the agricultural
sector and gaining competitive advantages within the national
and global economies.
• It is underpinned by a strong national land policy framework, a
commitment to environmental protection, and the sustainable
use of natural resources.
• Priority strategies include:
– Ensuring food security and nutritious diets, farmer income, and
consumer safety;
– Developing sustainable agriculture regarding climate change;
– Creating more employment opportunities.

No. Sector Program
1. Energy Renewable Energy and Energy Conservation Development
2. Electricity Rural and Urban Electricity Development
3. Post,
Telecommunication,
and Information
Technology
Enhancement, Equality, and Development of Post, Telecommunication, and
Information Infrastructure
4. Roads, and Land
Transportation
Road and Land Transportation Services Development and Improvement
5. Sea Transportation Sea Transportation Services Development and Improvement
6. Air Transportation Air Transportation Services Development and Improvement
7. Railways Railways Transportation Services Development and Improvement
8. Water Resources Water Resources Conservation
Water Resources Utilization
Water Resources Damage Control
9. Housing and
Settlement
• Housing Development : Provision of owned and rented residential.
• Sanitation and Drinking Water Development : Drinking water provision, Waste
Water Management System.
• Settlement rural/urban quality enhancement.
INDONESIA Infrastructure Program Priority in 2010 - 2014 I N F R AS T U C T U R E
Source : Ministry of National Development Planning/National Development Planning Agency (Bappenas). 2011. Infrastructure Development Strategy
In Indonesia. Seminar Presentation Material. Jakarta, 13 January 2011

• In 2003, as a part of the decentralisation process, the Education Law (No. 20, 2003),
set out four major directions:
– basic education should be free of all charges;
– schools should be given the authority to manage their own programmes;
– community participation in education should be encouraged; and
– the financing of education should be based on the number of students rather
than on the number of schools.
• In 2005, the government implemented the School Operational Assistance Programme
(BOS) in order to increase enrolment rates. This generally successful scheme has
helped reduce school costs, so easing the burden on Indonesian households,
particularly disadvantaged rural ones.
• Moreover, as part of the 2010-14 Medium-Term Development Plan (RPJN)
additional support from the regional government budget (APBD) has extended
free education to more and more regions.
E D U C AT I O N

• In 2007 – and again as part of RPJN – the government started a conditional cash
transfer scheme, the Family Hope Programme (PKH), to encourage poor
households to send their children to school. The PKH was designed specifically
to increase enrolment rates by making the nine-year duration of compulsory basic
education a reality.
• In the same year, the government launched another conditional cash transfer
programme for rural communities, the PNPM “Generasi Sehat dan Cerdas”. Under
the terms of the programme, community funds (BLM) are allotted to villages, with the
amount depending on the number of beneficiaries in a village – namely, pregnant
women and children under 5 years old or of primary school and junior high
school age. How the funds are used is decided by agreement among the villagers,
but they must be spent on improving the provision and use of maternal and child
health care and basic education services.
• The 2010-2014 Medium-Term Development Plan also has provision for school
infrastructure. Central government has assisted the regional authorities in
rehabilitating school buildings built in the 1970s and 1980s and further
increasing the total number of classrooms and new schools.

• A further measure – the open junior high school system – addresses the lack of
school infrastructure and the needs of students who either live in remote locations or
simply cannot attend school regularly for economic reasons.
• Children in poor areas tend to drop out and start working once they have gained
basic literacy and numeracy skills, because their parents, who mostly work informally,
see their children as workers and place no value in further education.
• The open junior high school system was created to provide a teaching and
learning schedule that is as flexible as possible. Tutors assist in the “learning
process” in their neighborhoods, while students meet every now and then to discuss
what they learned and eventually take exams in a “learning place” that may be further
away from where they live. No tuition fees are charged in open junior high schools
and, although the general curriculum is similar to that of their peers in regular junior
high schools, there is more emphasis on life skills as most students do not
continue formal education afterwards.
Source : Southeast Asian Economic Outlook 2013: With Perspectives on China and India. OECD, 2013.

• Indonesia does not spend enough on health care. Although government health expenditure has
increased in recent years, total health expenditure has remained under 3% of GDP (2000-2010).
• Since Indonesia began its decentralisation process in 2001, local authorities have had the
power to manage public health-care facilities and medical personnel by setting fees and user
charges for public health services and allocating the transfers received from central government to
finance provision. However, control over medical personnel‟s employment and pay conditions
and over the health insurance scheme for the poor has remained in the hands of the central
government.
• In 2004, the National Social Security System (SJSN) Law provided a blueprint for the future
shape of the social security system and envisaged a comprehensive system of social
protection with universal coverage. In addition to health insurance, the framework included
pensions, old-age savings, workers‟ compensation, and death benefits – all financed by
workers’ contributions, with the exception of provisions for the poor, which are funded by the state.
As for informal workers’ contributions, the SJSN Law states that nominal amounts instead of a
percentage of wages should be collected.
H E ALT H

• With respect to implementation, it specifies that the health-care programme should be put in
place first. The sustainability of the future system was also taken into account, as the law stated
explicitly that the programmes had to be affordable for the state budget.
• In 2011, in a major step towards the actual implementation of the National Social Security System
Law, a regulation spelled out the status of the BPJS, BPJS Health and BPJS Employment
administering health as well as work accident, old-age, pension and death related programmes.
• The BPJS are to be managed as trust funds on a non-profit, compulsory-participation basis and
are to be externally monitored by the DJSN. When the BPJS‟s health programme becomes
operational on 1 January 2014, current health insurance schemes will be dissolved and
managed by the new administrative body, BPJS Health.
• While public spending on health care needs to be increased, the medium- and longterm fiscal
sustainability of the reformed health-care system also deserves consideration. Another challenge,
in addition to the objective of universal coverage, is that the ageing of Indonesian society will
further increase the strain on the system in the long term.
Source : Southeast Asian Economic Outlook 2013: With Perspectives on China and India. OECD, 2013.

• Poverty Reduction at Heart of Government's Agenda. According to government figures,
14.15% of Indonesians (32.5 million) live below the national poverty line. Ever since the Asian
economic crisis in 1997/98, poverty reduction has been at the heart of government’s policy
agenda, which has seen various programs to protect the poor through the provision of rice,
health, and education and the empowerment of communities and business. This multi-
faceted approach to poverty reduction has been evident over the last two decades, and progress
has been marked. However, much work is still required if Indonesia is to achieve a poverty level of
8%-10% by 2014, as laid down in Millennium Development Goal.
• National Team for Accelerating Poverty Reduction. The latest government initiative recognises
that fighting poverty is not just dependent on the central government’s efforts, but also those of
local government, parliament, the private sector, civil society, academics, and international
agencies. The cross-community effort is harmonised under Presidential Regulation 15/2010,
which is headed by the Vice President. This new regulation seeks to:
– Create the poverty-reduction policy and programme;
– Make the poverty reduction activities more synergic between ministries and institutions;
– Monitor and evaluate progress.
POVERTY REDUCTION PROGRAMS
Asep Suharyadi, Athia Yumna, Umbu Reku Raya, Deswanto Marbun. 2010.
Review of Government’s Poverty Reduction Strategies, Policies, and Programs in Indonesia. Supported Research by ADB.
The SMERU Institute, Jakarta, 2010.

Current Strategy. The current government strategy for poverty reduction is delivered
by dividing the target audience into three clusters:
Figure 1. Three Clusters as The Target for Poverty Reduction Programme
http://www.cpr-indonesia.com

• After crisis, in 2003 government established the financial consultant for micro-scale, small, and medium-
entreprises„ bank partner. The consultant provides service to connect micro-scale, small, and medium-entreprises
with the bank so that loan can be quickly absorbed by the enterprises based on their credit business plans. Soon
after that, the government launched the scheme of microcredit without substitute collateral.
• There were also a number of microcredit programs under coordination of various ministries, such as:
– KUBE (Kelompok Usaha Bersama/Program Pemberdayaan Rakyat Miskin), Ministry of Sosial Affairs;
– PEMP (Program Pemberdayaan Ekonomi Masyarakat Pesisir), Ministry of Marine Affairs and Fisheries;
– P4NK (Proyek Peningkatan Pendapatan Petani dan Nelayan Kecil), Ministry of Agriculture;
– BLM-KIP (Bantuan Langsung Masyarakat-Keringanan Investasi Pertanian), Ministry of Agriculture;
– Revolving Fund for Smallholders with Profit Sharing or Syariah as well as conventional mechanisms, Ministry
of Cooperatives and SME’s.
• Other policy also has been taken includes the creation of a conducive business climate, creation of
employment, improving business capacity, improving the entrepreneurship, as well as make a grater access
to productive resources.
MICROFINANCE SCHEMES

• Regarding to support poverty reduction program , in the late 2007, government launched a
program called “Credit for The People” (KUR). This followed by MOU between
Government (represented by several ministries), Assurance Institutions (PT Askrindo
and PT Jamkrindo), and several banking (BRI, BANK MANDIRI, BTN, BUKOPIN, BSM).
• The government provides a subsidized guarantee scheme at amount 70 % in which
the government pays the premium.
• The target of this microcredit programs is the micro-entreprises and cooperatives which
have feasible business but they are not bankable because of lack of collateral.
• However, the government tend to focus more on directing resources toward reaching the
poor as many as possible but then not give enough attention on allocating resources in
the design and implementation of effective monitoring and evaluation.
Suharyadi, A., Yumna, A. Raya, U.R., and Marbun D.. 2010.

POLICY RELATED TO NATIONAL INNOVATION SYSTEM AND
RURAL TECHNOLOGIES IN INDONESIA
C H A P T E R 3 .

At the national level in
Indonesia, there is a
framework of an
innovation policy which
was illustrated in Figure
2. :
Figure 2. An Innovation Policy Framework
Policy Related to National Innovation System and Rural Technologies in Indonesia
Source : Taufik, T.A. (2007)

While a set of policies
for managing The
National Innovation
System (NIS) was
illustrated in Figure 3. :
Figure 3. Legal Framework and Strategic Environments in NRA Formulation
Source :
Taufik, T.A. (2007)

Source :
Taufik, T.A. (2007)
Organizational structure
for managing The
National Innovation
System (NIS) was
illustrated in Figure 4. :
Figure 4. Organizational Setting for Managing The National Innovation System (NIS)

Meanwhile, the policy that support directly to implement the appropriate
technology was based on the Presidential Decree No. 3, 2001 : The
Application and Development of Appropriate Technology. Presidential
Decree directs the Governors for facilitate, coordinate, cooperate,
evaluate, and reporting of those programmes on the application of
appropriate technology.
Presidential Decree also directs those Regents/Mayors to implement,
strengthen institutional capabilities, collaborate with other agencies, and
monitoring and evaluation on the application of appropriate technology
development at each local area.

R U R A L TEC H N OLOGIES W H IC H A R E A D OPTED
B Y TH E R U R A L PEOPLE FOR TH EIR LIVELIH OO D
C H A P T E R 4 .

THE MINISTRY OF HOME AFFAIRS
The Ministry of Home Affairs has formed 118 Posyanteks (the service center for implementing rural/urban
appropriate technology), in 28 Provinces along the year of 2010-2013. Here some appropriate technologies that
have been introduced by Posyanteks :
• Improvement technology for agricultural activities;
• Food processing technology;
• Waste management technology; and
• Productivity improvement for micro and small business.
Cassava Processing Batik Processing Harvesting Machine
Coconut Processing Milk Treatment Food Processing
Figure 5. Some Appropriate Technologies Introduced by Posyanteks
Rural Technologies which are adopted by the rural people for their livelihood
Source :
Ministry of Home Affairs (2013)

CENTRE FOR APPROPRIATE TECHNOLOGY DEVELOPMENT (B2PTTG),
INDONESIAN INSTITUTE OF SCIENCE (LIPI)
Location
Rural farm community in
ALOR (East Nusa Tenggara)
Horticulture farm
community in
SELENGEN (West
Lombok)
SUBANG (West
Java)
Agro forestry
community in
TANETE (South
Sulawesi)
Type of
Innovation
New cultivation technology and
new plants : sweet corn and
string bean cultivation at shore.
New cultivation
technology.
Modification of
existing
technology on fish
farming.
Utilization of electricity
from micro
hydropower
generator.
New technology for local
commodity based-food
processing, mainly fish
processing.
New technology for local
commodity based-food
processing.
New technology for
local commodity
based-food
processing.
New technology to
support food
processing business.
Source : Prasetyo, Apriliyadi, Hidajat, and Novianti (2009).

INDEPENDENT INNOVATIVE-VILLAGE
Independent Innovative-Village or in Indonesian called DESA INOVASI MANDIRI
(DIM) is one of NGO’s in Indonesia, located in Bandung, West Java, was
founded by Adjie Wicaksana. They build a community independent from all of
its aspects including : education, health, environment, and especially
economy. Grand Design for 3-years development of the Desa Inovasi Mandiri
is to achieve :
• Economic independency and local commodity excellence through the
application of technology;
• Standard of excellence in public education;
• Eco-village and zero waste technology;
• Energy independence based on local resources (Green Energy);
• Green and Healthy Living as well as centers of herbal plants; and
• Eco-Tourism.
https://www.changemakers.com/project/independent-innovative-village

DIAN DESA
Yayasan Dian Desa (YDD), or in English “light of the village
foundation”, is a non-governmental organization (NGO), was
founded in 1972, with a special focus on the development of
appropriate technology, at that time YDD’s activities were limited
to clean water supply and sanitation only.
Its operating locations were also limited e.g. in Yogyakarta and
Central Java Province only. Slowly, Yayasan Dian Desa has
grown, and at the present time employs approximately 300
people from various disciplines. The location of its activities has
also expanded.

Besides operating in Indonesia, YDD is now actively working
elsewhere in the Southeast Asia region, covers the following sectors:
• Water & Sanitation;
• Renewable Energy;
• Agriculture & Aquaculture;
• Small Industry;
• Waste Treatment;
• Water Treatment; and
• Microfinance.
Figure 6. Water Lifting System with
Hydraulic Ram Method Introduced
by Dian Desa
Yayasan Dian Desa can only help
communities who are willing to help
themselves. Therefore, in all water &
sanitation programs target communities
should contribute in whatever possible,
including providing local materials, labor and
possible financial inputs. This has become the
essence of partnership and foundation of
sense of ownership

YAYASAN BINA USAHA LINGKUNGAN
YAYASAN BINA USAHA LINGKUNGAN is a non profit organization in Jakarta,
established in 1993. YBUL promotes community-based renewable energy development
through collaborations and innovative solutions. YBUL is experienced and specialized in
promoting and implementing programs ini : Rural Electrification, Community
Empowerment, Environmental Financing Mechanism, Clean Development
Mechanism, and Green Energy Development.
YBUL installed 3 (three) small hydro turbine generator systems under the
sponsorship of USAID in the years 2001- 2002. Two of them were installed at PT
CAKRA, a tea plantation company located in the hills of CIWIDE, south of the city of
Bandung, West Java, Indonesia with a capacity of 120 kW each, and one turbine
generator at the village Garung, south of the town Garut, also in West Java, with a
capacity of 15 kW. While the first two are operated and maintained by a company to
replace the use of diesel oil for electricity generation, the third system was for community
power.

The two turbine generator systems at PT.CAKRA were built at a cost of US$ 400,000 and
they saved the company IDR 1,800,000,000 (2006) millions per annum (avoided diesel
cost). The 15 kW turbine generators at the village Garung, due to the entrance of
electricity supplied by the utility PLN, has now been moved to the village Ciderum, near
the city of Bogor in cooperation with the management of the forest protection of Gede
Pangrango Mountains, as part of their environmental responsibility.
YBUL presently works on developing small scale micro-hydro systems, aimed to
support the Indonesian government to expand renewable energy development and
rural electrification campaign. YBUL’s strategies shifted paradigms from “development
project approach” to “community movement” to the small scale micro-hydro development,
based on local need. Another important strategy employed by YBUL is integrating two
important sectors : renewable energy development and forestry reservation.
The supply side of the program (forestry) can promote conservation watershed areas
through e.g. maintenance and or improvement of forestry, as part of the climate
mitigation efforts, while at the demand side, the energy sector can promote micro-hydro
generators to substitute fossil fuel based on electricity provided by the State
Electricity Company.

Figure 7. Hydropower that introduced by
YBUL
The consortium agreed to build a pilot project area for two very small micro-hydro
systems (650W and 4.5KW) in Ciderum Village, Caringin sub-district, Bogor, West Java,
which has various functions: training for local community to become experts on
micro-hydro development, providing a field laboratory for students, providing home
electricity for the rural poor living in the village, promoting local productive uses,
supporting information and education, improving sanitation through provision of clean
water, etc.
In carrying out these approaches, started in mid
2008, YBUL has collaborated with different
stakeholders through a consortium including the
following partners: The Gunung Gede Pangrango
National Park, Bandung Institute of Technology (ITB),
The Conservation International (CI), Bogor Pakuan
University, Lembaga Pertanian Sehat, Community
Organizations called Tunas Mekar and Gerakan
Listrik Masyarakat (Gelimas), as well as Center for
Energy and Power Studies (CEPS) – PLN.

CRITICAL ISSUES IN RURAL TECHNOLOGIES (INCLUDING
COMMUNITY PARTICIPATION) DISSEMINATION AND
ADOPTION/IMPLEMENTATION
C H A P T E R 5 .

The researchers from Centre for Appropriate Technology Development (B2PTTG) Indonesian
Institute of Science (LIPI), Prasetyo, Apriliyadi, Hidajat, and Novianti (2009) has conducted a
research to know about “Resistance To Innovation : Case Of Appropriate Technology
Implementation In Rural Agriculture Communities”. They found that resistance is a normal
response to new ideas.
Generally, acceptance to innovation will not happen until the receivers (individual or community) see
significant advantages. This is known as a typical “safety first” attitude. Their experience in
implementing appropriate technology to four different communities in Indonesia i.e. fish farm
community in Subang (West Java), agro forestry community in Tanete (South Sulawesi),
horticulture farm community in Selengan (West Lombok), and rural farm community in Alor
(East Nusa Tenggara) indicated such phenomenon.
Various transferred technologies were commonly accepted and in fact, became assets to establish
home industries and/or agro-businesses. No significant resistances were shown once introduced
technology has met basic needs.
However, few cases of resistance – if not rejection – were found in a range of efforts and
participation level. Some developed into rejections eventually, while others were put in further
considerations. A study of their experience showed that a success in inducting innovation is
influenced by the type and level of technology being transferred, the added value delivered in
social and economy, and its conformity to those collective values.
Critical Issues in Rural Technologies (including community participation)
dissemination
and adoption/implementation

C O N C L U S I O N S
C H A P T E R 6 .

C o n c l u s i o n s
1. Inclusive growth and sustainable development have been declared in Indonesia National Long-Term
Development Plan 2005-2025 and National Medium-Term Development Plan (RPJMN) 2010-2014.
2. Inclusive Development in Indonesia emphasizes on 4 (four) aspects : infrastructure development;
universal education and access to health; poverty reduction programs; and microfinance schemes.
3. Those of inclusive development programmes have been implemented whether in The Mid-Term Development of
2004-2009 and 2010-2014, however government still needs to ensure and conduct an effective monitoring and
evaluation to measure how impacts to the rural-urban people livelihood and to what extent the impacts on pace
and pattern of national economy growth.
4. Rural Technologies or commonly called as an appropriate technologies for rural people in Indonesia have been
integrated to the National Innovation System (NIS). Organizational setting for managing the NIS in Indonesia
which mainly directed by sort of ministries, state owned entreprises, and other state agencies, should be more
open to empower and utilize private organization cappacities, including NGO’s, which also play role and have
experiences at the same field in term of research, science, knowledge, and technologies.
5. The Ministry of Home Affairs has formed 118 Posyanteks (the service center for implementing rural/urban
appropriate technology), in 28 Provinces along the year of 2010-2013. Generally, Posyanteks have done
successfully on rural improvement technology for agricultural activities; food processing technology; waste
management technology; and productivity improvement for micro and small business. Indonesian Institute of
Science (LIPI) also has done many projects on Appropriate Technology Development .
6. Meanwhile many NGO’ also have contributed to assist rural people and have made a great impact for rural
lifes, such as: rural electrification, eco-village and zero waste technology; energy independence based on local
resources (green energy); water availibility and sanitation improvement; agriculture and aquaculture technologies;
waste treatment; water treatment; and other projects regarding the purpose of inclusive growth and sustainable
development in the country.

R E F E R E N C E S

R e f e r e n c e s
1. Ianchovichina E. and Lundstrom S. 2009. What is Inclusive Growth?. The note was requested by donors
supporting the Diagnostic Facility for Shared Growth. February 10, 2009.
2. Mari Elka Pangestu. 2011. ASEAN Economic Meeting Focuses on Inclusive, Equitable Growth. Association
of Southeast Asian Nations Economic Ministers Plenary Meeting in Manado, Indonesia, Aug. 11, 2011.
3. Ministry of Home Affairs. 2013. Katalog Gelar Teknologi Tepat Guna Nasional XV. Provinsi Sumatera Barat,
26-30 September 2013.
4. Ministry of National Development Planning/National Development Planning Agency (Bappenas). 2011.
Infrastructure Development Strategy In Indonesia. Seminar Presentation Material. Jakarta, 13 January 2011.
5. Ministry of Trade. 2014. Total Balance of Indonesia Trade Period : 2008-2013. Trade Data and Information
Center, Ministry of Trade.
6. Organisation for Economic Co-operation and Development. 2013. Southeast Asian Economic Outlook 2013:
With Perspectives on China and India. Organisation for Economic Co-operation and Development (OECD).
7. Prasetyo, Apriliyadi, Hidajat, and Novianti. 2009. “Resistance To Innovation : Case Of Appropriate
Technology Implementation In Rural Agriculture Communities”. Centre for Appropriate Technology
Development (B2PTTG) Indonesian Institute of Science (LIPI).
8. Suharyadi, A., Yumna, A. Raya, U.R., and Marbun D.. 2010. Review of Government‟s Poverty Reduction
Strategies, Policies, and Programs in Indonesia. Supported Research by ADB. The SMERU Institute, Jakarta,
2010.
9. Taufik, T.A. 2007. Indonesia‟s Sub-National Innovation System Policy and Programmes. Presented at
National Workshop on Sub-National Innovation Systems and Technology Capacity Building Policies to Enhance
Competitiveness of SMEs., Kartika Chandra Hotel, Jakarta, Indonesia 3 -4 April 2007. Agency for the Assessment
and Application of Technology.

Site Source :
• http://www.bps.go.id
• https://www.changemakers.com
• http://www.cpr-indonesia.com
• http://www.developmentprogress.org
• http://diandesa.org
• http://www.gfmag.com
• http://indonesiadata.co.id
• http://stat.wto.org/
• http://www.travelandflavors.com
• http://worldpopulationreview.com
• http://www.ybul.or.id

HARIS BUDIYONO
C H A I R M A N
Center for Research on Autonomy and Regional Develovement,
L E C T U R E R
Faculty of Agribusiness, Islamic “45” University, UNISMA
Jl. Cut Meutia No. 83, Kecamatan Bekasi Timur, Kota Bekasi, 17113
INDONESIA
WAWAN MUNAWAR KHOLID
Head of Sub-Directorate for Socialization and Cooperation of
Rural Appropriate Technology
Directorate General of Village and Community Empowerment
Ministry of Home Affairs
Jl. Medan Merdeka Utara, No. 7, Jakarta, 10110
INDONESIA

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