The Role of Social Capital to Strengthen

Community Based Organization in

Indonesia

Study Case: PNPM Mandiri Perkotaan

(Urban Poverty Reduction Programme)Tomy Risqi

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Social Capital and CBOs

CBOs :• commonly known as community organizations• part of civil society and non profit• operate within a single local community• subset of the wider group of nonprofits• often run on a voluntary basis• are self funded• has many variations in terms of size and organizational

structure.• Some are formally incorporated, with a written

constitution and a board of directors (also known as acommittee), while others are much smaller and aremore informal

CBOs are qualified when they are able to maintain socialcapital to contribute to their work to improve community life

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Ecological Level of Social Capital

1. Micro trust among individuals and social connections andparticipation

2. Mezzo-community trust on CBOs ; community participation inprograms and project; community mobilization

3. Macro-trust across organization with common ties (coalition);linkage with larger society; new resources brought to community,mobilization across to community (Alejandro Molina, Technologist,Educator, Activist at Dr. Pedro Albizu Campos High School on Jul26, 2009)

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1. Associated with better overall health (Rose, 2000; Wilkinson, 1996,

1997)

2. Recognizes the importance of informal social interactions as having

potential to engender trust and to communicate and enforce norms.

(Putnam, 1995)

3. Makes group action possible e.g. facilitates coordinated action

among individuals. (Coleman, 1990; Putnam, Leonardi & Nanetti,

1993)

4. Social entrepreneurship is non profit activities to stimulate, energize

and encourage communities better (Gregory Dees ; 2012, Jim Ife

2007)

5. Social entrepreneurs (also known as community development) are

volunteer which organize entrepreneurship activities in communities

The Importance of Social Capital : correlate with Social Entrepreneur

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The Role of CBOs and CSO in

development

States increasingly support CBOs and CSOs who are taking on welfare roles for which they were initially responsible. Many states rely on service-oriented NGOs to deliver services faster, more efficiently, and in greater numbers to “local” community members.

Putnam and Fukuyama articulate their understandings of how, more precisely, the density of associational life in civil society leads to enhanced democratic participation and economic well-being

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Social Entrepreneur in Indonesia 1

Indonesia hasn’t had social entrepreneurship policy and regulation

Social entrepreneurship appears and grows up within communities

National Development Midterm Plan (RPJMN) 2010-2015 and NDMP draft 2015-2019 only mentions innovation in economic aspect

Since 2010, Indonesia establish National Innovation Committee under President task force till now

Social entrepreneur similar with CSR in corporation level. Indonesia regulate CSR; in UU No.40 tahun 2007 about profit company

CSR practices is being scaled up to support the achievement national development Including Millennium Development Goals (MDGs)

Government have been synchronizing CSR policy related to national development plan, implementation and reporting

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Social Entrepreneur in Indonesia 2

GOI provide a lot of policy for Indonesian social

entrepreneurs even limited such as :

1. Develop volunteer community and network in several

National Program like PNPM Mandiri

2. Facilitate coalition with International institutions, multi

donor trust fund, NGO, academician, and corporation

like UNDP, ASEAN Community, Kopernik, GEPI etc)

One of the most largest entrepreneur forum is Global

Entrepreneurship Program Indonesia’s (GEPI)

ongoing commitment to support entrepreneurship

ecosystem including social enterprises with

outstanding social or environmental impact,

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National Innovation System OECD concept

version

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System innovation Influenced by some

factor

(Herawan 2010)

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Sosial Entrepreneurship Research

The research result; 140 people of 13 town in Indonesia said if PNPM Urban social activity involved existing volunteer/social worker (93,6%)

They worked in community as enabler base on social capital = solidarity, contribution, reciprocity and trust

Trust develop network volunteerism to organize working group among CBOs and partnership

Partnership with knowledge sharing improve social worker/entrepreneur ability; in innovation, creativity and vision

Social entrepreneur working in community development; helping a community to establish welfare (Jim ife; 1997 ; 53)

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Indicator of High Quality CBOs in social activities

developed by existing group/community (14%) which ability maintain social capital

Helping community; provide resources and initiatives to improve education, health care and income

Easy to mobilize contribution; in kind or in cash

Effective; target accuracy perception (97 %) , satisfactory (87%)

Linkage with larger society, get trust across organization with common ties (coalition), partnership and collaborate with Local Government (42,9%) , NGO (1,4%) and market (2,1%)

Partnership- shared knowledge will sharpen creativity and improve innovation which is an entrepreneurship basic concept; such as recycling product (modern waste reduction), batik (creative industry ), snack 9/9/201411

The Role of Social Capital to Strengthen/Fortify CBOs

Volunteerism

Entrepreneurship

Social Capital

Use Existing

institutionAssume loan as stimulant

Trust across organization

with common ties

Networking ability

High Quality CBOs

High

Qu

ality C

BO

s

Hig

h q

ual

ity

CB

Os

High Quality CBOs

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From Social Capital to Volunteer Network

Volunteer connect people in every CBOs and

communities and then make them connected become

CSOs

CSOs as voluntarism association, vibrant associational

life is necessary for a well-functioning democracy and

economy. (Larry Diamond)

In CSOs; Volunteer linkage CBOs with large society, get

trust across organization with common ties (coalition),

partnership and collaborate with Local Government and

market

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Volunteer and entrepreneurship

1. Volunteer Linkage among communities support development progress well and obtain development target precisely

2. Partnership between CBOs-LG will sharpen volunteer innovation and social entrepreneur creativity

3. Volunteer network which developed by PNPM Urban can institutionalized shared knowledge culture, problem solving communities issues, basic needs issues,

4. Volunteer competency as social worker and local community development will improve to scale up social entrepreneurship widely

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