Local Economic Development

Enhancing the livelihoods of poor and near poor households is critical to Indonesia’s poverty reduction efforts. In rural Indonesia, most of the poor and near poor are self-employed in either agriculture or micro and small enterprises (MSEs), or both. Therefore, improving the productivity of MSEs is critical to improving the livelihoods of the poor – a core area of KOMPAK’s work to support local economic development.

Since 2017, KOMPAK has been partnering with local governments, start-ups and local producers – in this case, MSEs – to pilot an approach to enhance their ability to market and sell their products and services. This ‘Market Linkages’ approach assists MSEs to assess market opportunities and then design viable business options to respond.

KOMPAK is also working with Bappenas to integrate the lessons learned from these pilots to strengthen the local economic development components of the next national medium-term development plan (RPJMN 2020-2024).

KOMPAK Success 2022

An increased number of micro, small and medium enterprises, especially those involving the poor and vulnerable, have increased their productivity and market access.


Market Linkage Forum: Moving Towards A Single Digit Poverty Rate


In the recent years, there have been many poverty alleviation efforts to reduce the poverty rate to a single-digit. Among them are efforts by creating synergies between poverty programs, provision of equal social security to the people, channelling social assistance, granting substantial financial support and support to the village level, and other strategic measures aimed at pressing the poverty level to the lowest possible level.

Good Practice
Development of a Center for Coir Processing, Pule District, Kabupaten Trenggalek
01/06/2019 development-center-coir-processing-pule-district-kabupaten-trenggalek
Story of Change
Market Linkage Improves Welfare of Biopharmaceutical Farmers
13/07/2021 market-linkage-improves-welfare-biopharmaceutical-farmers
Preliminary Study of the e-Warong Kube-PKH Program Implementation
03/03/2017 preliminary-study-e-warong-kube-pkh-program-implementation
Market Linkage: A Blessing of Biopharmaceutical for Pule Village