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Project Archive

Indonesia - Technical Assistance to Regional Economic Development

Indonesia is the world’s fourth most populous country and comprises of more than 17.000 islands. As diverse as these islands are, so are the living conditions.  Many regions of Indonesia are dominated by small and mediums-sized enterprises (SME).

Economic development on regional level has proven to be the most successful tool in boosting SME performance. 

The Project

The overall objective of the RED Programme is to improve framework conditions, sector programs as well as planning and implementation processes for regional economic development. The project works on national level as well in pilot projects in three geographic regions. In a consortium with Meso partner and GFA, Swisscontact is implementing the approach in West Kalimantan (WK) and Central Java (CJ). 

Swisscontact's technical assistance focuses on building capacity of local partners in planning and implementation of sustainable Local Regional Economic Development (LRED) approaches in the target areas. The project works closely with the local and regional planning agencies (Bappeda), the various local Government Departments (Dinas) as well as with the private sector and supports them in fulfilling their specific tasks effectively under the framework of the regional development strategy. The programme provides capacity building in regulatory impact assessment, one-stop-services (OSS) for business licensing, business climate surveys, entrepreneurship training, value chain and cluster development and introduces issues related to green economy amongst its partners.


Outcomes 2014

  • 10 hotels joined the resource efficiency programme and implemented additional measures to save energy and water
  • 58 tourism providers have been competently certified, including 33 Tour Planners, 25 Hotel and Restaurants for Front Office, Housekeeping, Laundry, Food and Beverage Services and Products
  • 30 homestay owners on Karimunjawa island have been trained in hospitality and services excellence
  • 16 participants from Bank Kalbar and Borneo credit union in WK have been trained in a Training of Trainers and registered with Competency based Economies through Formation of Enterprise (CEFE) International
  • The average satisfaction level with the quality of services of OSS for business licensing increased by 93% which potrays that the quality of services of OSS improved drastically
  • 29% increase in the number of full-time equivalent (FTE) employees in the pepper sector in WK and 21% increase in income of farmer households have been achieved
  • Cost savings based on increased resource efficiency includes a decrease of 62% in the use of chemical fertilisers, 25% in the use of pesticides and 5% in the use of herbicides
  • The number of employees in the tourism sector have increased by 41%

Project partner

  • GIZ
  • GFA

Project website


Project countries

  • Indonesia

Project duration

2011 - 2015


  • GIZ

Working area