Project: Resilience & Sustainable Water Jugs Value Chain for Women Entrepreneur
State of development: Current
Stage of development: Final negotiations
Stage notes: Scale-up
Type of instrument — Impact Bond: No; Outcomes Fund: Yes; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: Yes; Other: 
Rationale for using outcome-based finance: This program qualifies as a Scale Up initiative since the original program, initially developed by Danone Indonesia, primarily concentrated on economic growth. It aimed to provide women entrepreneurs with opportunities to establish their own stores, support them as distributors of Danone Indonesia products, and facilitate them with the basic market access. The existing outcomes-based project led by Danone Indonesia primarily revolved around offering promotional support and investment to assist women entrepreneurs in launching their distribution businesses.
With the program we are proposing, our aim is to expand the project's scope beyond addressing solely economic impacts and also encompass environmental issues. Within this program, our intention is to establish a sustainable system that can influence market behavior regarding waste management. Simultaneously, it will create additional income opportunities for these women entrepreneurs who will serve as waste collection points.
Key challenges to launch: The potential challenges that could hinder the realization of our project's goals are deeply rooted in cultural norms, behavioral patterns, and people's mindsets. Navigating the introduction of new innovations and fostering a growth-oriented mindset is undoubtedly a complex endeavor. Particularly in rural areas, numerous women are inclined to maintain the status quo, reluctant to embrace change and transform their circumstances.
Hence, the essence of this program lies in the cultivation of local champions who can serve as role models and effective trainers. By harnessing the influence of these champions, our aim is to create tangible examples that inspire and mentor others, transcending the barriers posed by culture and mindset.
Social/developmental challenge: Through this program, we aim to tackle below challenge:
- Addressing Post-Pandemic Inequality: The aftermath of the pandemic has highlighted a concerning rise in inequality, particularly in urban areas, with a disparity ratio of 0.4 compared to the national ratio of 0.38. This discrepancy is further accentuated by the fact that women's employment rates hover at around 55.5%, considerably lower than the 80.7% employment rate among men.
- Tackling Plastic Pollution: Indonesia holds the alarming distinction of being the second-largest contributor to marine debris, releasing a staggering 7.8 million tons of plastic into our oceans. Urgent action is imperative to mitigate this crisis.
Expected intervention model: KUMPUL collaborates closely with Danone Indonesia and Jubelo to establish a sustainable value chain aimed at supporting women entrepreneurs. This initiative encompasses business and digitalization knowledge, livelihood enhancement, and the creation of an additional income source via waste management system. Under this framework, women entrepreneurs will be encouraged to have additional service as plastic waste collection points to quantify plastic waste and convert it into cash-equivalent points. The program includes comprehensive capacity building covering business and sustainability aspects, personalized business mentorship, and access to financial support. The overarching goal of this endeavor is to empower women entrepreneurs, enabling them to achieve a sustainable annual profit increase of up to 50%.
Policy sectors — Employment and private sector development: No; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: Yes; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: 
Primary SDG goal: 8,13
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: No; Upper-middle-income: Yes; High-income: No
Notes: Data for this pipeline project was last updated in August 2023
Delivery location: Indonesia