Green Economic Growth Programme (GEGP) in Papua Provinces in Indonesia

Description

The Green Economic Growth Programme for Papua Provinces (GEG) is providing technical support for small and medium enterprises (SME) development from the bottom-up, while increasing the confidence to go-into-business. The Programme aims to increase the confidence of local authorities to manage local economic development and attract investors to rural and urban regions of Papua Provinces. The programme will identify and support a portfolio of SMEs that will serve as an inspiration for a green investment strategy to both provinces in Papua. The success of selected small holder farmers (SHFs) and SMEs should catalyse more green investment by leveraging successful interventions to crowd-in public and private finance to potential green enterprises in both provinces. The programme will address five critical issues preventing Papuan SHFs and SMEs from developing sustainable agribusiness enterprises and viable small businesses: • weak capacity (low levels of education, lack of knowledge and basic business skills) of SHFs and SMEs; • Papuan SHFs and SMEs in remote rural locations struggle to produce commercially viable volumes of commodities and have very limited access to markets; • most Papuan SMEs have difficulty accessing commercially viable amounts of credit and face high entry barriers; • a lack of coordination and synergy among key government agencies and donors that are supposed to support Papuan SHFs and SMEs; • the high cost of official licensing and permits required to do business, and the unofficial costs associated with local rent seeking. The programme delivery has been structured around 5 technical work streams: • Market Systems; • Socio-Economics and Gender; • Farming and Production Systems; • Credit and Finance; • Business Incubator and Investor Engagement.

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