Indonesia’s Government Investment Center and UN Women Launch Partnership to Empower Women Ultra-Micro Businesses

[Press release]

Jakarta, Indonesia — UN Women and The Public Service Agency (BLU) of Government Investment Center (PIP), a fund coordinator of The Ultra Micro Financing (UMi), signed a Memorandum of Understanding (MoU) to accelerate the economicempowerment of women ultra-micro businesses in Indonesia. The UMi from PIP is a social assistance program that assists micro-businesses, especially those who are not bankable to become independent business owners. The MoU aimed to further expand partnershipin advocating for women’s rights to equal economic opportunities.

Ririn Kadariyah, President Director of BLU-PIP (left) and Dwi Faiz, Head of Programmes UN Women Indonesia (right) held the signed MoU between BLU-PIP and UN Women. Photo: Pusat Investasi Pemerintah

The MoU was signed virtually by UN Women Representative and Liaison to ASEAN, Jamshed Kazi, President Director of BLU-PIP, Ririn Kadariyah and witnessed by key representatives from the two institutions.

Approximately 99 per cent of businesses in Indonesia are categorized as micro, small and medium (MSMEs) enterprises. And 60 per cent of registered MSMEs in Indonesia are managed by women.^[1] Women in Indonesia face limited access to skills development andbusiness networks, challenges that are largely due to discriminatory and cultural norms and make it difficult for them to start and grow their businesses. These challenges have become more pronounced amidst the COVID-19 pandemic. The strengthenedcooperation between BLU PIP and UN Women will enable an ecosystem for women entrepreneurs to access entrepreneurial and leadership skills development, and access to funding.

President Director of BLU-PIP, Ririn Kadariyah, believed that women in Indonesia have tremendous potential for the economy. “Indonesian women have a significant role in the family and the community. The empowerment of women will benefit the familyand the society,” said Kadariyah.

Since it was launched in 2017 to 21 December 2021, BLU-PIP’s UMi has funded 5.38 million ultra-micro businesses, and 95 per cent of them are women with more than 18 billion rupiah funding. It reached 503 regencies and cities out of 514 regencies and citiesacross Indonesia. “BLU-PIP focuses on funding aspect when it comes to economic empowerment, but I believe that we can do more. The synergy between PIP and UN Women will benefit UMi’s beneficiaries through skills development and understandingthe gender-sensitive entrepreneurship,” added Kadariyah.

The partnership includes three key areas of work: (1) Supporting women ultra-micro entrepreneurs through capacity development and knowledge sharing; (2) Supporting Account Officers, BLU-PIP’s field officer, through capacity building on gender equalityand entrepreneurship; and finally (3) Promoting Women’s Empowerment Principles to stakeholders on integrating gender equality into business practices and culture.

It will also benefit women’s UMi receivers or 95 per cent of 5.37 million beneficiaries.

Commemoration photo between delegation of BLU-PIP and UN Women Indonesia after the signing event has finished. Photo: Pusat Investasi Pemerintah

The capacity development for ultra-micro entrepreneurs and Account Officers will utilize UN Women’s WeLearn. Since October 2019, WeLearn has facilitated various learning sessions for women micro-entrepreneurs, including self-paced online learningcourses through WeLearn website, tutored online training sessions, and in-person offline training and mentoring sessions. Under this partnership, WeLearn expanded its online learning materials on different topics related to entrepreneurship, suchas leadership and negotiation skills and gender-sensitive entrepreneurship.

“This collaboration comes during a critical time when we are still facing the COVID-19 crisis and struggle to recover. The pandemic has tremendously affected women entrepreneurs, particularly at micro and even ultra-micro levels. Therefore, it isimportant for COVID-19 recovery to create equal and sustainable economic opportunities, ensuring that women-owned businesses survive and thrive,” said Dwi Faiz, Head of Programmes UN Women Indonesia, at the MoU signing ceremony. “We arepleased to enter this new partnership with BLU-PIP, UN Women and PIP share a mutual interest to provide more than financial access for women entrepreneurs, but also skills and knowledge to be empowered.”

The UN Women and BLU PIP partnership reflect growing efforts to partner with the financial institution to channel investment and resources to support women’s economic empowerment. Such investments are expected to accelerate progress towards genderequality, poverty eradication, and inclusive economic growth in Indonesia.

[1] Ministry of Cooperative and Small and Medium Enterprises, July 2020.