The goal of our training projects (also called capacity building) is to build the skills of the disadvantaged members of the community so that they are able to produce products of a high quality which can be marketed and sold.
Once these goals are achieved, we integrate these activities into a new or existing social enterprise. After receiving initial start-up funds from a so called “Dedicated Trust Fund”, the enterprise is then in most cases able to finance itself through self-generated funds and no longer requires financial support from Switzerland.
The ownership of these companies is then transferred to Indonesian citizens who priorly worked as Project Managers in Muntigunung. They have the capability to assess the local situation as well as want to exercise their social responsibility.
We coach the new owners and develop their skills in the management of these companies, specifically focusing on marketing, sales and accounting.
It is agreed with the owners by contract that the majority of the net profit is reinvested into the expansion of the business and increasing the number of jobs.
The ultimate goal is to employ as many people as possible. This is the reason why, whenever possible, the social enterprises choose manual processing over the use of machines.
We are well aware that this increases our production costs when compared to our competitors. We also pay fair prices for the raw materials, appropriate wages and support workers with health problems. These factors force us to focus on niche segments and operate with much lower margins.
Whenever possible, we purchase the raw materials used in production locally in Muntigunung in order to secure additional income for the community. If this is not possible, the raw material is purchased in other parts of Indonesia, but processed in Muntigunung.