REDUCING POVERTY IN INDONESIA

According to the World Bank, the number of the poor in Indonesia reached 105,3 millions or 45,2 percent from its total population (Anonym, 2007). Meanwhile, the data by Indonesia’s Centre for Statistic Board (BPS) in February 2007 showed that the total number of the unemployment was of 10,547,917 people or 9,7 percent from its labor force (Muhammad-Ichsan, 2007).

Moreover, the multi-dimensional crisis occurring in Indonesia since 1997 which is not conducive for economic activities has made both domestic and foreign investors reluctant to invest their money for local businesses. Although there have been numerous efforts done by government to attract the foreign investors, the outcome has not yet resulted in significant improvement. Economic activities in real sector that is largely related to lower middle class seem to have no place in these investors’ interest as they are more likely to invest in financial market. That is why the unemployment and poverty rates in Indonesia are still high.

Then what should we do? We cannot just rely on the government to solve the problem. Therefore, the time is now for the young generation to make difference and to take a stand creating vacancy for who need. Thus, despite many other possible solutions to these problems, this essay is intended to propose an effective strategy, that is, entrepreneurship based community development.

Community Empowerment and Entrepreneurship

Community empowerment by providing training to a wide range of society is an immediate importance to do since there are still many of Indonesian people who are not well-educated which resulting their lack of knowledge and skills. This effort will be more appropriate, moreover, when targeted to improve the economic condition by building up the spirit of entrepreneurship as it could be one of the easiest and the most appropriate strategy to do in order to create job vacancy and reduce poverty due, one does not have to wait until the government offers vacancies.

Concept to Reduce Unemployment and Poverty

The simplest thing to reduce the unemployment rate in my community is giving opportunity to the people around  to produce and sell some products made of local ingredients. Indeed, Indonesia is rich with natural resources that have not been optimally used since most of its people do not know how to process these potentials into higher value-added materials or quality products. In addition, the effort to change the mindset of most Indonesian people that regards foreign product as something more fashionable and views local products as of less quality must be immediately done as well. The following is the sample showing the richness of Indonesian local resources.

Table 1. Local Resources in Indonesia

Note : *) Local Food of Gunung Kidul, processed by spread out in the sun to dry.

The above data name only small fractions of the enormous natural resources of Indonesia. Thus, Indonesian people should not be poor when they actually can make use of all of these into quality product – but ironically many Indonesian people are unemployed as I have mentioned above. In fact, if we connect both unemployment and local resources problems in Indonesia, we can build a good concept for entrepreneurship. Of course, what needs to be done is to train the society (especially the unemployed) to process the local resources into something of higher value-added material. Therefore, the entrepreneurship concept I am offering can solve several problems all at once and bring positive impact to the environment and society in local community.

Reference :

Anonym, 2007. http://www.tribun-timur.com/view.php?id=73905

Muchammad-Ichsan,2007. Ayo… Bangit dari Pengangguran. Penerbit Mocomedia