Project background

‘Tanah Papua’ which comprises Papua and West Papua provinces, in Indonesia’s largest but most sparsely populated region with 3.6 million inhabitants, consisting of more than 250 tribes and ethnic group (2010, BPS census) with at least 73 per cent of the indigenous Papuans living in the rural areas. Despite the fact that the region is blessed with enormous natural resources, its poverty rate is more than double the national average and the highest of the country at 34.88 per cent for West Papua and 36.80 per cent for Papua.

Papua and West Papua also lag behind other provinces on key non-income indicators of the Millennium Development Goals (MDGs). Papuan’ Net Enrolment Rate in Primary Education is around 90 per cent for West Papua and 76.09 per cent for Papua (national rate is at 95.23 per cent).

Gender inequality is particularly strong in traditional patriarchal communities in terms of (a) women’s limited access to resources and to decision making, as well as (b) gender division of labour. This situation translates into a restricted access of Papuan indigenous youth and women to a decent livelihood.

To accelerate the human development process in Papua, the Government of Indonesia granted a special autonomy status to the provinces (OTSUS). Its full implementation has been delayed due to limited civil society participation and lack of capacity and coordination between national provincial and district level institutions, which has lead to the absence of an inclusive framework for developing sustainable livelihood.

Project goal and objectives

The project will contribute to the second phase of the UNDP People Centred Development Project- Output 2 “Improved community welfare, in particular of indigenous Papuans through the functioning of local Government and civil society basic systems and processes for sustainable livelihood development in Papua regions”. The proposed intervention will also complement other outcomes of the PCDP2, namely participatory approach to policy making and plans, improved delivery of health and education services, improved coordination mechanisms for development of the Papua region.

The project will focus on improving capacity of the existing stakeholders, including Indigenous Papuan people as target beneficiaries to have an access for a better livelihood through three interconnected components:

• Support potential local business development in Papua and West Papua;
• Facilitation of access to fi nance to selected business groups; and
• Establishment of micro enterprises development centre/ incubation initiatives.

Target beneficiaries

The primary target benefi ciaries of the project are communities particularly Papuan indigenous peoples located in at least 10 sub-provinces in Papua and West Papua.

Executing agencies

International Labour Organization (ILO) and United Nations Development Programme (UNDP)

Main activities

Using lessons learned and experiences gained as well as local networks and partners developed through the past ILO’s project interventions in implementing livelihood activities under PIPE (Papuans Indigenous Peoples Empowerment) Project, EAST (Education and Skills Training) Project and ESD (Entrepreneurship

Skills Development) Project in Papua, the major project activities will include:

• To facilitate the linking of selected local business with potential agencies who can provide the technical skills for added value products (post production processing);
• To conduct training micro-enterprise development, finance management, and marketing;
• To map private/public banks and other financial institutions that provide micro finance support;
• To conduct feasibility assessment of access to finance support;
• To assess existing institutions and their capacity for enterprise development;
• To undertake a study on the needs of women entrepreneurs;
• To formulate clear methodologies, curriculum, and training programmes for supporting enterprise development;
• To conduct value and supply chain mapping analysis;
• To conduct a business climate and investment survey at provincial level;
• To conduct a labour diagnostic; and
• To pilot the enterprise development center at selected sub provinces.

Key partners

• Governors and head of districts
• Regional Planning and Development Agency (BAPPEDA) of Papua and West Papua Province
• Provincial Community Empowerment and Family Planning Agency (BPMK) of Papua and West Papua Provinces
• Provincial Ministry of Manpower and Transmigration of Papua and West Papua Provinces
• Bank Indonesia and Local Banks
• Cendrawasih University and Ottow Geisller University in Papua Province and Papua State University (UNIPA) in West Papua Province
• Local Communities Organizations and Communities-Based Organizations;
• Chamber of Commerce (KADIN), the Indonesian Employers’ Association (Apindo) and Trade Unions
• Provincial House of Representatives
• Local Mass Media