Analysis of the Value Initiative Program in Jakarta, Indonesia (VIP Indonesia), which introduced cleaner production technology to thousands of tofu and tempeh producers in Greater Jakarta between 2009 and 2011. Their experience offers a number of key lessons for value chain development and urban development practitioners:
Main findings
- Tofu producers supported by the programme reported USD 600 annual average gain over other tofu enterprises. Similarly tempeh enterprises reported annual income increases of USD 100 over other tempeh enterprises
- Engaging in innovative ways including with the traditional social networks, formal and informal enterprises, cooperatives, and government institutions was key to the project. Urban social networks can be particularly effective in disseminating information on improved technology and practices
- Finance in the form of equipment leasing is a viable approach even when the equipment is low-cost. Additionally distributors of equipment can aggregate demand and reduce risk through guarantees.
Intervention description
VIP Indonesia implemented process upgrading for tofu and tempeh producers in Greater Jakarta through cleaner production technology which included introduction of stainless steel vats and boilers, gas cookers, and other modern equipment and disseminating information on more hygienic and environmental production practices. The project also facilitated links between equipment suppliers, distributors, and a leasing company which provided access to equipment financing for the upgrade.
Evidence methodology
- The review is based on the project's established results chain which clearly outlines the project activities, outputs, outcomes and impacts.
- The project uses a monitoring and results measurement plan which identifies the indicators used to assess actual impacts.
- The data is collected from enterprises and service providers directly assisted through the programme as well as observations of other enterprises.
Useful for:
Practitioners working on urban value chain interventions and, or informal enterprise development projects