Developing inclusive business model: better workplace, better business

In Cirebon district, West Java Province, one of the largest rattan-based furniture and handicraft center in Indonesia, SNV Indonesia, in partnership with PUPUK (Perkumpulan untuk Peningkatan Usaha Kecil), engages buying companies to apply a more sustainable and inclusive working relationship with their subcontractors.

We develop a three-party-partnership (SNV, companies and subcontractors) to find solutions.

SNV Indonesia introduces inclusive business through one-on-one meetings or series of workshops in collaboration with AMKRI (Indonesia Rattan Association) in Cirebon.

As many as eleven companies have recognized the concept of inclusive business. Seven companies have started to implement inclusive business practices, starting with audit of their subcontractors’ workplace environment.

One buying company, PT Luck One Living, has agreed to provide financial support for training five of its subcontractors on first aid and fire prevention, benefiting 80 freelance workers.

PT Luck One Living also helped to upgrade the facilities to create a cleaner work place, clarify production flow and ensure safety. Employees now benefit from cleaner and lighter walls, delineation markers, improved toilet condition, improved ventilation, new storage for raw materials, and the installation of first aid kits and fire extinguishers.

SNV has developed more than 140 Inclusive Business projects in Africa, Asia and Latin America. Our experience includes Inclusive Businesses with companies and Base of the Pyramid communities involved as suppliers, employees, distributors and consumers.

SNV Indonesia works with the largest European and Asian rattan furniture buying companies and their subcontractors to create inclusive business models through The Promoting Eco-friendly Rattan Products (PROSPECT) project with funding from the European Union. The project aims to promote sustainable production and consumption practices in Indonesia’s rattan value chain.

The project involves 400,000 people (livelihoods) from rattan farmers to SMEs workers, develops a more sustainable production for 2,500 rattan producers and 1,500 rattan processors. It focuses on 6 aspects: raw materials, production, energy, environment, health and safety of workers, worker relations, and documentation. One of the main activities are training and support the rattan producers in applying the sustainability principles and practices throughout the rattan value chain.