The One Village One Product initiative in East Kalimantan’s Kembang Janggut aims to move local products beyond household-scale businesses by strengthening supply chains, financing, production capacity and market access.
PALMOILMAGAZINE, KEMBANG JANGGUT, Indonesia — Efforts to develop micro, small and medium enterprises (MSMEs) in Kembang Janggut District, Kutai Kartanegara, East Kalimantan, are moving beyond the creation of village-level signature products, with local authorities and business partners seeking to build an industrial ecosystem that connects local resources with broader markets.
The commitment emerged at a One Village One Product (OVOP) workshop held at the Kembang Janggut District BPU Building on October 1, according to an official statement received by PalmOilMagazine.
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The workshop marked the culmination of the PoweRRR program, implemented by Solidaridad Indonesia in partnership with Koperasi Perkebunan Belayan Sejahtera (KBS). The program has supported women farmers, workers and MSME operators across 11 villages through potential mapping, group strengthening, business planning, packaging development and marketing strategies.
Kutai Kartanegara Regent Aulia Rahman Basri said the strong collaboration among local MSMEs needs to be matched by better coordination among government agencies.
He noted that several government programs continue to operate within separate sectors, making stronger coordination necessary to ensure they are better aligned with community needs.
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“We will bring several teams together to ensure government programs are delivered effectively and reach the right beneficiaries,” Aulia said, adding that the enthusiasm for collaboration among local MSMEs should serve as an example for government agencies.
OVOP Linked to District-Level Industry
Aulia said the OVOP concept should be developed beyond household-scale businesses, prompting the local government to promote a One District One Industry approach.
The model is intended to connect village products with broader value chains covering raw materials, production, standardization, financing and marketing.
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Preliminary data from the Kutai Kartanegara Office of Cooperatives and SMEs shows that around 600 MSMEs operate in Kembang Janggut. Their businesses span handicrafts and cultural products, food and culinary products, agricultural commodities and other productive activities.
Products identified so far include seraung traditional hats, sulam tumpar embroidery, anjat woven baskets, bamboo and rattan handicrafts, processed foods, cakes, madu kelulut stingless-bee honey and various household products.
The next challenge is to identify priority products while improving quality and packaging, securing legal certification, expanding production capacity and increasing access to markets and financing.
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KBS Urged to Support Palm Oil Industry Development
Aulia also highlighted the role of Koperasi Perkebunan Belayan Sejahtera (KBS) in strengthening the local economic institutions and supporting farmers and local businesses.
He encouraged KBS to help advance the One District One Industry concept, including opportunities to develop a palm oil-based industry in the Sungai Belayan area.
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According to Aulia, KBS’s membership base, institutional capacity and business experience could provide a foundation for developing industries capable of generating greater value for local communities.
KBS Chairman Jamaluddin said strengthening MSMEs is inseparable from the development of cooperatives and the rural economy.
“A cooperative cannot become strong when the community economy is weak. When MSMEs grow, household incomes increase, employment opportunities expand and the village economy becomes more resilient,” he said.
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KBS said it is prepared to serve as a facilitator, a bridge to government agencies and markets, a network builder connecting MSMEs, and a partner in developing the Kembang Janggut MSME Center.
MSME Center to Become Product Development Hub
Solidaridad Indonesia is also encouraging the collaboration established in Kembang Janggut to be replicated in other districts across Kutai Kartanegara.
Kutai Kartanegara Head of the Office of Cooperatives and SMEs Muhammad Reza said the Kembang Janggut mentoring and collaboration model could provide lessons for MSME development elsewhere.
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The Kembang Janggut MSME Center is expected to evolve beyond a product display facility. It is being positioned as a hub for data collection, business consultation, product curation and promotion, while connecting businesses with markets and financing institutions.
Within 90 days of the workshop, stakeholders are expected to validate business and product data, identify priority products, improve product quality and packaging, conduct market testing and establish marketing channels.
Ultimately, the success of OVOP will not be measured simply by the number of products displayed, but by whether village products can secure sustainable markets, increase entrepreneurs’ incomes and retain more value within local communities. (P2)
