Entrepreneurship and Vocational Training for Youth Employment in Regions Pilot project : Nanggroe Aceh Darussalam Presented by Riswati Okinawa Confederation of Indonesia Prosperity Trade Union (KSBSI) INDONESIA

Project Title :Entrepreneurship and Vocational Training for Youth Employment in Regions Pilot project : Nanggroe Aceh Darussalam Tentative Duration :Six (6) Month Starting Date :September 2007 Geographical Coverage :Nanggroe Aceh Darussalam Project Language :Indonesia/Aceh Executing Organization/Unit : Confederation of Indonesia Prosperity Trade Union (KSBSI) Implementing Unit :Youth Committee of KSBSI Preparation date :15 August 2007 Author :Riswati Okinawa SUMMARY PROJECT OUTLINE (SPROUT )

1. Background & Justification Indonesian economic crisis forced government to sign MOU with IMF and World Bank which brought consequences to the country such as privatization, liberalization and deregulation. Those consequences caused Indonesian economic headed for worse condition and also gave direct impact to workers which is indicated by high unemployment and labour flexibility. More over, Tsunami in Nanggroe Aceh Darussalam on the end of 2004 caused informal sectors grow rapidly. Indonesian economic crisis forced government to sign MOU with IMF and World Bank which brought consequences to the country such as privatization, liberalization and deregulation. Those consequences caused Indonesian economic headed for worse condition and also gave direct impact to workers which is indicated by high unemployment and labour flexibility. More over, Tsunami in Nanggroe Aceh Darussalam on the end of 2004 caused informal sectors grow rapidly.

The high rate of unemployment and unskilled workers was caused by education system that is not matched with labour market demands. Based on data of Ministry of Manpower, the unemployment number is 11.1 million, where 5.81 million are males and 5.30 million are females. The high rate of unemployment and unskilled workers was caused by education system that is not matched with labour market demands. Based on data of Ministry of Manpower, the unemployment number is 11.1 million, where 5.81 million are males and 5.30 million are females. Government does not implement vocational training optimally. There are only 9 active labour training centers while the number of labour force is million. Government does not implement vocational training optimally. There are only 9 active labour training centers while the number of labour force is million.

Therefore, to assist KSBSI members and to help address problems faced by the labour force in particular youth workers in terms of lack of training skills, this project is being proposed. Therefore, to assist KSBSI members and to help address problems faced by the labour force in particular youth workers in terms of lack of training skills, this project is being proposed.

2. Target Groups and Other Parties Target Group Entrepreneurship and vocational training for KSBSI members comprising 160 youth employment, full timer and volunteer in Aceh. Participant will be divided into 4 categories, depending on the skill demands. Entrepreneurship and vocational training for KSBSI members comprising 160 youth employment, full timer and volunteer in Aceh. Participant will be divided into 4 categories, depending on the skill demands.

The skills are recommended after assessment project in Aceh on June 2007, they are: The skills are recommended after assessment project in Aceh on June 2007, they are: a. Sewing and embroidery: 40 Women b. Fish Processing: 40 Women c. Vehicle Mechanic: 40 Men d. Brick wall production: 40 Men

Implementers This training will be implemented by Regional Youth Committee KSBSI in Aceh which will collaborate with National Youth Committee, particularly on methodology and curriculum building. Decision-makers It shall be supervised by KSBSI National Executive Board, who generally approves the budgetary expenditures upon the recommendation of the national treasurer.

3. Development Objectives This work-plan will contribute to achieving the following : To increase professionalism of Acehnese’s Youth Labour To increase professionalism of Acehnese’s Youth Labour To stimulate Indonesian government to implement training skills for labour as their continuities responsibility To stimulate Indonesian government to implement training skills for labour as their continuities responsibility

4. Immediate Objectives The target group will be able to: Explain how to compose a good business plan, financial management, marketing strategy to promote their product and business development Explain how to compose a good business plan, financial management, marketing strategy to promote their product and business development Have a specialty to be able to work professionally. Have a specialty to be able to work professionally. Have bargaining power towards employers for having skills. Have bargaining power towards employers for having skills.

5. Key Outputs/Direct Results The outputs are: 160 Acehnese’s workers with sufficient skill will have capacity to start business 160 Acehnese’s workers with sufficient skill will have capacity to start business 160 Acehnese’s workers who have sufficient skill will attain a good job that meets with his skills 160 Acehnese’s workers who have sufficient skill will attain a good job that meets with his skills

6. Activities Within six (6) months, the following activities shall be performed : To form organizing committee To form organizing committee To compose curriculum draft as cooperation with specialist from National Youth Committee and to identify some second opinions from professional consultant. To compose curriculum draft as cooperation with specialist from National Youth Committee and to identify some second opinions from professional consultant. To submit proposal to have sponsor To submit proposal to have sponsor To identify the resources persons To identify the resources persons

To arrange venue and schedule : To arrange venue and schedule : a. Sewing and embroidery: October 2007 b. Fish Processing: November 2007 c. Vehicle Mechanic: December 2007 d. Brick wall production: January 2008 To send invitation to members To send invitation to members To prepare training materials and relevant references To prepare training materials and relevant references Follow-up activities as stated in point no.10 (monitoring/reporting/evaluation procedure) Follow-up activities as stated in point no.10 (monitoring/reporting/evaluation procedure)

7. Main Inputs Resources Person : Ministry of Manpower, mechanic specialist, professional tailor man, fish processing specialist, experienced entrepreneur, brick wall specialist, small medium enterprises specialist. Financial resources: 30% of the total cost will be funded by central committee of KSBSI 30% of the total cost will be funded by central committee of KSBSI 70% will be funded by external parties, preferably from Ministry of Manpower and The International Labour Organization (ILO) 70% will be funded by external parties, preferably from Ministry of Manpower and The International Labour Organization (ILO)

8. Indicators of Achievement Indicators of Achievement are: Report of training implementation and pictures

9. Management of Risks Potential RiskPossible Response Risk 1 Sponsor refuses the proposal To convince government to fund the training and other related future activities Risk 2 Participants are not interested To promote the course as attractive as possible

10. Monitoring / Reporting / Evaluation Procedures Montly report from participants Montly report from participants Weekly monitoring from Region Youth Committee as implementer Weekly monitoring from Region Youth Committee as implementer

11. Preliminary Budget Proposal Main Item Local Currency (Rp) US$ 1. Preparation of the programme Implementation of the Programme Sewing and Embroidery Training Fish Processing Training Vehicle Mechanic Training Brick wall production Training Meeting Sub Total: Sub Total: unexpected of expenditures (10%) Total : US$ = Rp