Entrepreneurship skills help communities in Indonesia build new livelihoods beyond coal

SURABAYA, East Java, Indonesia (ILO News) - As Indonesia moves towards a low-carbon economy, many workers and communities in coal-dependent regions will need new opportunities to sustain their livelihoods. Entrepreneurship is one pathway that can help make the transition fair and inclusive by equipping people with the skills and confidence to start or grow their own businesses in emerging and sustainable sectors.

To support this transition, the ILO’s Regional Innovation Initiative for a Just Energy Transition (IKI-JET) project trained 20 local partners from its targeted areas South Sumatra and East Kalimantan – Indonesia's two largest coal-producing provinces – to become entrepreneurship trainers through a Training of Trainers (ToT) held in April 2026.

Building the capacity of our partners is a long-term investment... we are strengthening local ownership and creating a pool of expertise that will continue to benefit workers and communities in East Kalimantan and South Sumatra.

Muce Mochtar, the ILO's IKI-JET National Project Coordinator in Indonesia

Using the ILO's Gender and Entrepreneurship Together (GET Ahead) training package, participants learned practical business management and soft skills, including communication, problem-solving and decision-making. More importantly, they learned how to deliver training through participatory learning that encourages discussion, experience sharing and peer support.

"Building the capacity of our partners is a long-term investment. By equipping trainers from government institutions, trade unions and other local stakeholders with entrepreneurship skills and participatory training methods, we are strengthening local ownership and creating a pool of expertise that will continue to benefit workers and communities in East Kalimantan and South Sumatra," said Muce Mochtar, the ILO's IKI-JET National Project Coordinator in Indonesia.

Creating space for people to learn from one another

© Ariel Prananda/ILO

© Ariel Prananda/ILO

Tourism has always been Erny Y. Silalahi's passion. Born and raised in East Kalimantan, she became the first tourism graduate from Mulawarman University before completing a master's degree in Tourism Management in Brisbane, Australia.

Now an Associate Expert at the Provincial Office of Tourism and Creative Economy of East Kalimantan, Erny has spent 18 years designing and delivering training programmes. She thought she knew what effective training looked like.

That changed when she joined the ILO's Entrepreneurship Training of Trainers. "When I entered the training room, there were no tables, no presentation slides and no training materials. I only saw chairs arranged in a circle," she recalled. "I wondered what we were going to do for five days."

Participants who are usually quiet and shy became more open. They actively shared their opinions and learned from each other. This method really encourages participation.

Instead of lectures, the training focused on participation, dialogue and learning from one another. Through discussions, practical exercises and experience sharing, participants built both facilitation and entrepreneurship skills.

Inspired by the approach, Erny quickly put it into practice with support from the ILO's IKI-JET project. She has since facilitated three entrepreneurship training programmes for tourism entrepreneurs, palm oil communities and trade union representatives.

"Participants who are usually quiet and shy became more open. They actively shared their opinions and learned from each other," she said. "This method really encourages participation."

Today, Erny incorporates videos, case studies and group discussions into her own training sessions and plans to integrate entrepreneurship into future tourism training programmes.

"I want participants not only to develop technical skills, but also to understand how to turn their ideas into sustainable businesses," she said.

Inspiring communities through shared experiences

© Ariel Prananda/ILO

© Ariel Prananda/ILO

For Martha Indah Fajarwati, an instructor at the Vocational Training Centre of the Provincial Manpower Office of South Sumatra, entrepreneurship training introduced a completely different way of engaging learners. "The training was more interactive, easier to understand and encouraged participants to share their experiences," she said.

She has since facilitated entrepreneurship training for communities in Palembang City and Musi Banyuasin District, where many participants are connected to the palm oil sector. "Participants described the training as fun, engaging and practical," Martha said. "They even asked for another training because they enjoyed learning from one another."

Technical skills alone are not enough. Participants also need entrepreneurial and financial skills to build sustainable livelihoods.

The connections formed during the training have continued beyond the classroom. Martha recalled how one participant's experience of running a quail farm inspired others from different villages to explore similar business opportunities. Since then, participants have stayed connected through a WhatsApp group, where they continue to exchange knowledge, encourage one another and share updates on their businesses.

Inspired by the experience, Martha is now working to mainstream entrepreneurship into companies’ CSR programmes and advocating for an information centre at the provincial training centre, where young people and training graduates can continue learning together.

She also plans to integrate entrepreneurship into all 12 vocational training programmes delivered by the centre. "Technical skills alone are not enough," she said. "Participants also need entrepreneurial and financial skills to build sustainable livelihoods."

Growing confidence to support better planning

© Ariel Prananda/ILO

© Ariel Prananda/ILO

For Etsa Prametsary W. Pratama, a young staff member at the Regional Development Planning Agency (Bappeda) of East Kalimantan, the training took her beyond the boundaries of her daily work. A graduate in Regional Economic Development from Gadjah Mada University, she has always been passionate about development planning and public policy.

"My daily work is behind a desk, preparing regional development plans," she said. "This was my first experience as a trainer."

As the youngest participant – and the only representative from Generation Z – she initially wondered whether her ideas would be taken seriously. "My worries disappeared because everyone appreciated my perspective and wanted to hear my ideas," she recalled.

I now better understand that development planning must reflect the real needs of local communities. That perspective will help me support more responsive and inclusive policies in East Kalimantan.

Since completing the training, Etsa has co-facilitated entrepreneurship training for tourism communities, palm oil workers and trade union representatives. "I've always enjoyed public speaking," she said.

"The ILO gave me the opportunity to step away from my laptop, engage directly with communities and learn from different sectors."

Working closely with participants has boosted her confidence and broadened her perspective. She was inspired by a young tourism practitioner who established an educational garden and a youth storytelling community in a tourism village, as well as by an experienced entrepreneur in the palm oil sector who continues to develop new business ideas despite his success.

The insights she gained have also strengthened her work as a regional planner. "I now better understand that development planning must reflect the real needs of local communities," she added. "That perspective will help me support more responsive and inclusive policies in East Kalimantan."