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10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2

INNOVATION PERFORMANCE IMPROVEMENT FOR THE WOMEN AS A CREATIVE INDUSTRY BASED EFFORTS TO IMPROVE LOCALITY FAMILY

WELFARE

by: Endry Boeriswati, et al.

ABSTRACT

The involvement of women in development programs such as strengthening the economy and improving the quality of human resources to eliminating poverty is going through. Women's powerlessness in the face of poverty in the capacity building aspect of the selling power of women is caused by a lack of self-knowledge in overcoming gender-related problems, ignorance of self-motivation and self-optimization potential, the potential utilization of the environment to be of economic value, and procedures in conducting the creative industry. Poverty reduction requires a strategy that includes equity, equality in welfare levels, access levels, the level of awareness, level of active participation, and power levels that can be implemented in capacity building in the empowerment of women in the creative industries. The ownership of the capacity building is a person who encourages a person to survive in a competition like today's economy.

(Keywords: Poverty, Women, and Capacity Building)

A. Introduction

Gander is a social format that governs the relationship of men and women through social

processes. Gender role differences occur due to the differences of the local cultures in assigning

role of women. Gender is not a universal or is generally accepted, but it is socially situational which

depends on the social development. This gender social format is the construction which allocates

roles, rights, obligations and responsibilities of both male and female. Gender identifies the social

relations between women and men, which is not defined by biological difference, but more

sharpened by the distinction of learning and cultural values. Biological distinctions that define what

can and what cannot be done by women according to community agreements. The gender which is

based on the distinction of the values determines the role of women in all aspects of life and

October 15-16, 2010Rome, Italy

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equality of women. Because of that, gender may change from place to place, time to time, even

between socioeconomic classes of society. On the other hand, sex does not change (Fakih, 1996).

The existing data indicate that the condition of women in Indonesia is still much need of attention.

In the field of education women are still left behind their man’s partners. While the instructional

materials used and the process of education management are still gender bias, as a result of male

dominance as a determiner of educational policy (Soemartoyo, 2002).

The impact of the assigning gender in Indonesian culture has positioned women are in

poverty. Poverty is a complex problem influenced by many interrelated factors such as income

level, health, education, access to goods and services, geographic location, and the gender and

environmental conditions. Poverty is a condition in which someone or a group of men and women

who cannot fulfill their basic rights to maintain and develop a dignity life. This definition moved

from a rights-based approach that states that the poor have equal basic rights with other

community members.

In 2004 the absolute number of poor people was recorded at 36.1 million people or

16.66% of the total population. Of this amount, if the sex difference is used, poor women

outnumbered poor men. Poor households headed by women increased to 3.03 million, and the

number is increasing rapidly from year to year. From the above description, it can be said that

poverty is very close to women. According to the National Socioeconomic Survey (SUSENAS) of

2004 the number of women aged 10 years and over who have not or do not go to school is two

times as much as the number of men who have not or do not go to school (11.56%: 5.43%). This

condition illustrates that poverty is still attached and very closed to the women.

Poverty is defined as the powerlessness of a group of people on the government system

that causes people to be in the position of being exploited. This shows that poverty is a condition of

life pattern, culture, and patterns of interaction which is not something given, but it occurs because

of the role of the oppressive structure (Huri, 2009). The dominant discourses that state that women


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need not economically independent have become a major cause of women and poverty linkages.

Education factor has become a part of an effort to make the women dependent economically.

Without gender equality, poverty and underdevelopment cannot be overcome completely.

The government has done many efforts to eliminate the poverty through various poverty

programs by providing intensive programs, soft loans, subsidies, and grants. A number of ways

and the efforts done by Indonesia in reducing poverty has been implemented since the Social

Welfare Program for Joint Business Group of Independent Young Families (Prokesos KUBE

KMM), Welfare Savings (Takesra), Business Loan for People's Welfare (Kukesra), Small and

Medium Business Credit, Social Safety Net (Social Safety Net Program), and direct cash

assistance. The efforts done in the process of poverty eradication are carried out by the

government in collaboration with communities, NGOs, and private parties. However, these

programs that do not have a significant impact in poverty alleviation programs. This is because the

programs that have been launched by the government in poverty alleviation give more "fish"

compared to "hook" to poor families. Communities are used as objects than as subjects in the

process of poverty alleviation. The project provided by the government in poverty alleviation

proposal does not come from the poor but only the desire of the government alone. All the poverty

alleviation programs which are revolved are socially accepted by the society without considering

the environmental characteristics of each community and active participation and role of society in

poverty alleviation programs.

A number of efforts undertaken by the government in poverty alleviation programs are

entirely only on the side of pivot on the paradigm of modernization (the modernization paradigm)

and the product cantered model whose study is based on theoretical models of capital economic

growth and neoclasic orthodox economic (Elson, 1977; Suharto, 2002). In general, the approach

used is more concentrated in individual poverty so that social and structural aspects of poverty

become untreated.


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However, when examined more wisely, these programs have not been able to alleviate

poverty significantly. Women become second-class citizens, and become the object of various

change efforts that have been prepared within the framework of thinking based on assumptions

that are highly skewed male. This has become one of the factors that explain why women are left

behind or left out in the development process. In general in development programs at the level

provinces, districts, and villages, both men and women not involved in the planning and decision

making. Nearly all the decisions of the program are top down, so people just stay as the executor

of the program. Traditional norms are still often used as reference in designing the policy

programs, and there is a tendency to use the same policy for rural development. The involvement

of women in development programs such as, strengthening the economy and improving the quality

of human resources is expected to be realized. Because of that, the equality strategy is needed,

such as equality in the level of welfare, access levels, the level of awareness, level of active

participation, and level of control/power for the empowerment through increasing the capacity

building. Capacity building can be defined as capacity development or capacity strengthening,

suggesting an initiative on the development of existing capacities, whereas others are more

referring to the constructing capacity, as a creative process to build capacity that is not visible (not

yet exist). Brown (2001:25) defines capacity building as a process that can enhance the ability of a

person, an organization or a system to achieve the aspired goals. Unlike Brown, Morison (2001:42)

sees capacity building as a process to do something, or series of movements, changes in multi-

level individuals, groups, organizations and systems in order to strengthen the ability of individuals

and organizations so that adjustments can be responsive to changing environments. In this context

the terminology of capacity is the ability of an individual, an organization or a system to carry out

functions and achieve the objectives effectively and efficiently.

Capacity building can also be defined as a process to (1) improve the ability of individuals,

groups, organizations, and communities to analyze their environment, (2) identify issues, interests


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and opportunities, (3) formulate strategies to solve problems and interests of those in above and to

take advantage of opportunities that are relevant, (4) design a plan for the program, and (5)

effectively utilize basic resources that support implementation, monitor and evaluate program

plans, and (6) use feedback to learn the lessons. Sensions (1993: 15) states the notion of capacity

building as follows:

capacity building is usually understood to mean helping governments, communities and individuals to develop the skills and expertise needed to achieve on their goals. Capacity building programs, often designed to strengthen participant's abilities to evaluate their policy choices and implement decisions effectively, may include education and training, institutional and legal reforms, as well as scientific, technological and financial assistance.Capacity building is generally understood as an effort to help governments, communities or

individuals in developing expertise and skills needed to achieve the goal. Capacity building

programs are often designed to strengthen the ability to evaluate their policy options and execute

decisions effectively. Capacity building can include education and training, regulatory and

institutional reforms, as well as financial assistance, technology and science.

In this capacity development, we actually optimize the empowerment of individuals in the

development. Empowerment can be defined as the acquisition of power and access to resources

for a living. The term empowerment is often used to describe the situation as desired by the

individual, in the circumstances of each individual to have choice and control in all aspects of life.

This concept is a form of respect for human beings or in other words "to humanize human beings."

Through the empowerment, it is expected that there is a shift in roles from "the victims of

development" to "the agents of development". Development perspective views empowerment as a

very broad concept. Pearse and Stiefel in Prijono (1996) explain that participatory empowerment

involves the respect for difference, local wisdom, strength deconcentration, self-reliance

improvement.

The success of empowerment can be seen from the empowerment of the society that

involves economic ability, the ability to access the welfare benefits, and the ability of cultural and


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political types. These three aspects are linked to the four dimensions of power, namely: ‘power

within', 'power to' , 'power over', and 'power with'.

Based on the thought above, what the factors do support the improvement of women

innovativeness on poverty alleviation viewed from the aspect of capacity building.

In the innovativeness concept, women act as an object which can be a tool for social

change through the innovativeness of society’s groups, new ideas for creating welfare (Peter

Drucker, 1988). Innovativeness has the characteristics of (a) analyzing relative advantages as

users of new ideas, (b) compatibility with the value and character of the new culture, (c) the

difficulty of the ideas that meant, (d) divisibility, and (e) easily communicated (Philip Kolter, 1983).

The innovation process requires two things: invention and needs, thus creating more opportunities

for innovation itself to be developed and used. Innovation can be adopted into a new tool by the

society who use it (Alan Webb, 1996). Adoption process does not stop on a merely accept or reject

new ideas, but later will change again as a result of the influence of the environment. Because of

that, modification is done by dividing the process of decision making about innovation.

B. Research Methodology

1. Research Methods

This is the developmental research on women's capacity building for poverty reduction,

this study was categorized into applied research, namely to implement, test and evaluate the ability

of the theory applied in solving practical problems (Sugiyono, 2001). As an empirical matter,

poverty alleviation through improving the capacity building of women is interesting to study

ethnographically by focusing on the subject system knowledge and how knowledge is organized to

determine the action. In addition, the ethnographic methods were used to discover how to organize

cultural community in mind and then use these cultures in their life. This approach is more holistic,

integrative and qualitative analysis in order to get a native point of view.


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2. Technique of Data Collection

The data used in this study were mainly derived from primary data collected from

interviews with individual respondents by using structured questions. In general, descriptive

methods were used in analyzing the data. The criteria stated by Sayogyo, World Bank and the

Bureau of Statistics were used to measure the level of the poverty.

Both primary and secondary data were collected through in-depth interviews, participant

observation, and a written document analysis. Primary data actually took the precedence over the

secondary data, although the secondary data occupies an important position in this research. The

primary data were obtained directly from informants (base, main, supporting) and field observation;

whereas secondary data were collected through the library references. As an ethnographic study,

the analysis was carried out continuously in the field and when writing this final draft. Identifying the

parts, understanding the relationships inter division, with an overall understanding of the

relationship, and expressing it were the most important events in this analysis. Spradley calls

ethnographic analysis as a re-examination of the record field to search for cultural symbols (which

are usually expressed in the native language) and explore the relationship among the symbols. An

ethnographic analysis, as stated by Spradley (1997:118), departs from the belief that an informant

has understood a series of categories about his/her own culture, learn the relations, and realize or

find out the relationship with the whole.

3. Technique of Data Analysis

As it is usual in ethnographic analysis, interpretation method was used to access more of

the various domains in which are naturalized and the characteristics of the activity of the

participants being studied (Morley quoted from Barker, 2000: 27). Critical aspect in ethnography

which was applied in this study was more emphasis on the processing and comprehensive


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analysis of ethnographic findings in the field. With applied ethnographic study, the goal is to find

the self-capacity building model through the implementation of innovativeness of women in poverty

alleviation. Triangulation through focus group discussion was used to determine the validity of the

data. The results of focus group discussion were used as research data.

4. Unit of Analysis

This is a multi-year study which lasts for three years with three stages. The first phase

aimed at mapping the problems that were needed to know the conditions and causes of poverty

faced by the respondents. In addition, data collected in this study were the efforts made by the

perpetrators of the creative industries in achieving success.

To obtain the data on poverty, the theoretical construct referred to the concept of poverty.

Poverty could be conceptually divided into three types, namely subjective poverty, absolute

poverty, and relative poverty (Sarasutha and Noor, 1994). On the concept of subjective poverty,

everyone bases his own thoughts by stating that their needs are not met adequately, although in

absolute terms or relative was not classified as poor. In other words individuals make comparisons

between the "needs and wants." The definition of absolute poverty is a person (family) having

insufficient income to maintain the minimum requirements in an efficient physical condition, while

the concept of relative poverty is associated with the concept of relative deprivation or someone

relative position to other community members in connection with the fulfillment of needs. This

concept is closely related to income inequality. Actually, poverty issues have been discussed by

experts from various viewpoints. For example, Sen (1981) looks at poverty from the viewpoint of

biological or basic needs. Scott (1979) views from the average income per capita, and Freidman

(1979) sees it from an opportunity to actualize the social power base. (Crescent, 2002).

C. Results and Discussion


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One of the strategies being undertaken to implement poverty alleviation is to involve

women through the PKK. This movement is a national movement within the community

development that grows from the bottom whose management is from, to, for the community toward

the realization of a family who is faithful and devoted to God Almighty, morality and virtuous,

healthy, prosperous, progressive and independent, welfare and gender justice and legal and

environment awareness.

Through the PKK movement, it is expected that the pattern of family-based poverty

alleviation can be realized. This pattern is a benchmarked from the pattern based on community-

driven development that is the existence of a community's ability to decide for itself the choice of

the available resources for their own purpose and usefulness. On the PKK, the smallest community

is in the family environment, so that the resources owned by the smallest family are a highly

valuable capital to improve family living standards.

The pattern of the PKK movement is expected to serve as the icon driver of poverty

alleviation programs. The fact that there are at present more dominant PKK movement to support

government programs that have been developed without the participation of local community

desires. Strategy of the PKK which has been running to make changes by involving the community

to decide what to do with the program. Active participation of community involvement can be done

through a number of NGOs to participate and assist in formulating an appropriate course for local

community needs. The government only serves as a facilitator in facilitating all the activities of the

PKK.


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The Module for improving the innovativeness of the women to alleviate the poverty


The role of the PKK movement in the process of poverty reduction essentially has two

dimensions:

Provide authority and trust in the smallest family groups to determine their own needs, plan

and make decisions openly in a group with full responsibility;

Provide support a conducive and comfortable environment for each group of the smallest

families in realizing and improving family life through the availability of existing resources

The Implementation of poverty alleviation by involving women through the PKK can

explained in the following model:

Figure 1: The Model of Poverty Alleviation through PKK


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Education and Training of Innovativeness in cooperation with relevant institutions

PKK movement in the regions

Women Empowerment Section

Creative industy establishment and development

Industry and Trade Section

Finance Institutions

Creative industry product marketing

UKM & Cooperation Counters

Creative Industry Counter

Parts of the proceeds benefits set aside to increase innovativeness


Based on the model of poverty alleviation that have been prepared, then the first step is to

arrange the modules to increase the innovativeness of the women to alleviate poverty. By

cooperating with the agency (related party), especially the PKK organization and units (parts), the

empowerment of women in local government is designed through education and training activities

on improving the innovativeness whose participants are women who come from the PKK

organization.


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The Implementation of this training program followed by a maximum of 15-20 people from

the PKK organization. One group that participates in the training program on improving the

innovativeness of women into one unified whole, and it is expected that after the training is

completed the participants create and design the development of a craft and creative industries.

The role of the PKK organization and units of empowerment of women in the

implementation in this training is to prepare the trainees, provide the budget, to prepare the

infrastructure facilities. The tutors (teachers) are the module writers that have followed the Training

on Trainer (TOT) on tutors (teachers) related to the implementation of education and training of

woman innovativeness. Tutors come from the universities that have received education and

training related to the substance of the implementation of education and training of woman

innovativeness.

The implementation design of training program on the innovativeness should be agreed

and approved by both the tutors (teachers) and the organizers (PKK organization and the

Empowerment of Women). As a result of this agreement, each party knows its duties and

responsibilities in the implementation of education and training on the innovativeness of the

women.

The output of the program is the establishment and the development of creative industries.

The members involved in the implementation of creative industries are the result of cooperation

from a number of participants of the training on women’s innovativeness.


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The process of establishment and development of creative industries involves a number of

related agencies, one of which is the industry and trade unit. Government institution, that is

industry and trade unit, can serve as a facilitator in the development of creative industries.

Technical assistance undertaken by the industry and trade unit is needed in the process of

developing the creative industries such as the development model of the creative industries to be

more interesting, easier preparation of the raw material of creative industries, and can assist the

process of guidance in making the creative industries by providing a number of the required

facilities and infrastructures.

Other institutions that can provide support in the implementation of the development of

creative industries is a financial institution. This institution can help the development of creative

industries by providing capital with the low-interest loans. This financial institution may include a

number of general banks, Bank Syariah, or non banking institutions (cooperative or venture capital

firms). The existence of financial institutions is very helpful for the continuity and sustainability of

creative industries that have already existed.

The institution that assists in technical aspects of funding in the process of developing the

creative industries is necessary. This is due to the fact that the presence of creative industries will

still need guidance and assistance in all aspects. As a new industry organization that is developing

it will need assistance from other parties in order to develop the creative industry development.

Local governments have an obligation to assist and develop the existed creative industry.

When viewed from the macro-economic level, the existence and progress of the creative

industries are very helpful in increasing the national income of a country. While in the field of micro-

economic level, presence of creative industries will help increase family economic opinion. Based

on these two aspects it is very reasonable that the sustainability and existence of the creative

industries should be supported by all parties.


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The products of creative industries, such as handicraft industry, must be marketed to the

public. The process of implementation of the marketing of the products of creative industries should

be supported so that the existence of these products can be well known by the public. To make the

promotion of creative industry products can work well a number of institutions should be involved.

Cooperative and SME units can be used as a means to market the products of creative industries.

Cooperative and SME units can be used as a marketing place because one of the functions of

Cooperatives and SMEs are advancing the people's economy by helping to market the products of

creative industries. Marketing aspects of the product from the creative industry are a very

important. This is due to the development of creative industries heavily dependent on the proceeds

of production. With more and more the result of creative industry production sold then the total

production of the creative industries will also be increased rapidly so that the creative industries will

experience rapid growth.

The sales of creative industry products done by cooperatives and SMEs can also be done

by creating a special store that sells the products of creative industries by partnering with local

governments. Local governments are obliged to promote the products of creative industries

through the establishment of a shop that is specialized in the production of creative industries. The

existence of Cooperatives and SMEs and special store to sell its creative industries should support

each other. It means that there should not be any difference in the marketing of both products, in

terms of price, packaging, display and promotion through the provision of discounts. Therefore the

existence of a means to sell its creative industry products should have a manual of standard

procedures for product marketing creative industries.

The result of creative marketing of industrial products will provide benefits for the creative

industry players, namely the PKK organization. Some Part of the profits obtained from selling the

products of creative industries to a maximum of 10% is used for the innovativeness development

process of women in poverty alleviation. Results of spare profit of 10% will be able to provide


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The module for Improving Women innovativeness for Poverty Alleviation


benefits to the group of PKK organization itself to develop the innovativeness capacity in the

process of poverty alleviation. The proceeds raised from the profits aside can also be given to

others to develop women innovativeness with other PKK organizations which are formed to

develop different creative industries.

The Sustainability of the implementation of the development of women innovativeness

improvement for poverty alleviation programs is influenced by the funding coming from the gain on

the sale of products of creative industries. The presence of the PKK movement in shaping the

creative industries are expected to develop into a small industry, so the help provided by the local

government will be reduced gradually, and eventually discontinued. Based on the model of poverty

alleviation, the PKK movements play an important role in the process of poverty alleviation.

The poverty alleviation programs that involve small scale industries will have significant

influence for the family, because most of the revenue obtained by women will increase household

income. The phenomenon of women's participation in increasing the family income is an issue that

began to flourish in some areas of local government. Participation of rural women to increase

family income should be appreciated by the local government. One form of award given by the

local government to women is to increase the competence of women in the field of small industries.

It is expected that the enhancement of the women competence will have an impact on

increasing the innovation possessed by women in running the creative industries. It is expected

that the increase in innovation will impact on poverty alleviation process in each local government.

The model of poverty alleviation through the involvement of small scale industries are as follows:

Figure 2 : The Model of Poverty Alleviation through Small Scale Industry


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Training on improving women innovativeness in cooperation with small scale industries

Society and groups who care for Poverty Alleviation


The module of improving the innovativeness is used in the training of improving the women

innovativeness. The participants of this training are women involved in small scale industries. The

implementation of this training program works closely with a number of people or organizations

concerned in the process of implementation of poverty alleviation. Communities and organizations

concerned with poverty alleviation prepare participants, the budget and training facilities. Training

Implementation is expected to be done in the form of ‘the off the job training’.

The output of the training is two groups that can support poverty alleviation, namely:

1. There is a group of women who wish to establish the creative industries. This group should

be supported due to their willingness to work in the field of creative industries. To

encourage the establishment of creative industries the government provides some

incentives for the formation of the new creative industries. Government incentives will be


Establishing creative industries

Developing a creative industry based on small scale industries

Marketing of creative industries based small scale industries

Association of creative industries

Incentive from local government

Association of Creative Indusries

Fundraising contribution from the members of creative industry association

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discontinued if a creative industry which is based on the small scale industries is

developing well.

2. There is a group of women who have a willingness to develop the creative industry based

on the small scale industries that have already existed. The development of this creative

industry can involve the associations related to the creative industries. These associations

may help the development of creative industries through a number of activities including

the implementation of exhibitions, promotions in the form of leaflets or posters about the

creative industries, and works with the different creative industries can also be facilitated

by the creative industry associations.

Marketing of creative industry products involves the creative industry association. The

authority of industry associations is to facilitate the marketing of products of creative industries

through the implementation of creative industry products exhibition, providing a range of

information related to product market prospects of creative industries, and opens a shop selling

only the result of the creative industries that are derived from the same local government area.

All costs of implementation activities undertaken by the creative industry association come

from the fundraising contribution from a number of creative industries in the area of each local

authority. Beside that the contribution of funds can also be used to run the training of women

innovativeness.


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In the implementation of the poverty alleviation, local governments have only a minor role.

The roles of communities and organizations related to poverty alleviation and creative industries

are very significant. The participation of the government in this model is only to helps provide

incentive for the formation of the new creative industries.

D. Conclusion

The process of implementation of poverty alleviation through improving the women

innovativeness in the local-based creative industries was conducted in two ways:

1. The process of poverty alleviation through the PKK movement

2. The process of poverty alleviation through small scale industries

In the implementation of the first process, the role of government involvement is more

dominant role than the role of society but the government only functions as a facilitator, while the

substance of the creative industries is determined by the involvement of local communities.

Unlike the first process, in the implementation of the second process of poverty alleviation,

the roles of community involvement (association of creative industries) are more dominant. Thus all

the creative industries development processes are facilitated by association. The government role

is only limited to providing incentives for the establishment of the newly formed creative industry.

The similarity of these two ways of implementation is the establishment of creative

industries is based on the existing craft industries in the neighboring community. So, when the

process of formation and development of creative industries is in progress, the local community is

very enthusiastic to get involved.

E. Suggestion

The implementation of improving the women innovativeness in the creative industries

needs to be fully supported by the government, related communities and organizations


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(associations, universities and NGOs). The involvement of third parties must mutually support each

other. The government can act as a facilitator who can provide incentives as well as some

assistance in the process of formation and development of creative industries. The community

must proactively participate in the process of formation and development of creative industries. In

the implementation of all activities of the creative industries, communities play an important part to

the continuity and sustainability of the industries. Related organizations also help supervise the

implementation of the formation and development of creative industries.

Aids provided by NGOs, universities or associations are a process of self-development of

creative industries. In addition, there is also an evaluation of all decisions made by governments in

the process of formation and development of creative industries. The results of this evaluation are

expected to provide useful input for the continuity and sustainability of creative industries.

These three elements should be in unity and can support each other because without

some supports from these three elements, it is very difficult to develop the creative industry in

Indonesia.

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