Indigenous entrepreneurs in Indonesia often face challenges in adopting sustainable business practices due to limited access to resources and financial constraints. This is why the Siak Sustainable Creative Center (Skelas) aims to bridge this gap through the Siak Sustainable Business Incubation (Kubisa) programme, providing training, mentorship, and funding opportunities for micro, small and medium enterprises (MSMEs) in Siak Regency, Riau Province.

Skelas was founded as a result of the Festival Kabupaten Lestari (FKL), an event organised by Lingkar Temu Kabupaten Lestari (LTKL) to promote sustainable development. “During the festival, LTKL invited young people to participate and contribute. Seeing their enthusiasm, LTKL took the initiative to form a community that could support the Siak district government in protecting the local environment,” said Cerli Febri Ramadani, Chairperson of Sentra Kreatif Lestari Siak.

By integrating sustainability into business models, Skelas aims to empower entrepreneurs while ensuring ecological responsibility.

Overcoming barriers to sustainable business

MSMEs in Indonesia encounter several obstacles in their transition to sustainability. “The biggest challenges faced by MSMEs in Indonesia are the availability of skilled human resources and digital technology experts in business,” Ramadani noted.

High costs for raw materials and wages in Siak compared to the more highly populated Java further complicate the situation.

To address this, businesses in Siak differentiate themselves by sharing the cultural and environmental stories behind their products.

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Ramadani highlighted Pinaloka, a business that produces pineapple-based goods. “Pineapple is the most widely cultivated crop by the people of Siak on peatlands. Besides being rich in vitamins, pineapple plants also help prevent peatland fires. The story of environmental sustainability and the empowerment of pineapple farmers is an important aspect highlighted by Pinaloka.”

The Kubisa programme is designed to equip early-stage and existing entrepreneurs with the skills and resources needed to grow their businesses sustainably. “KUBISA is a training and mentoring programme for entrepreneurs who are just starting a business or have been running one for at least a year,” Ramadani explained.

The six-month programme provides business development support, promotional access, product innovation funding, packaging redesign, and capital assistance for top-performing participants.

Skelas also facilitates business matching sessions, connecting entrepreneurs with investors and buyers to secure funding and distribution channels. By focusing on both financial viability and sustainability, the programme helps entrepreneurs scale their businesses responsibly.

Ensuring economic viability for sustainable businesses

Balancing environmental and economic sustainability is a core objective of Kubisa. “We help KUBISA participants record their income to monitor the economic growth of their businesses,” said Ramadani.

Post-business matching, Skelas tracks the outcomes and assists participants with proposal preparation, product consignment, and purchase facilitation.

This structured approach ensures that businesses contribute to environmental protection and achieve financial stability, making sustainability a practical and profitable choice for MSMEs.

Strategic partnerships play a crucial role in strengthening sustainability efforts. “Every time Skelas conducts an activity, it invites community, government, and business partners,” Ramadani stated.

For the 2024 Kubisa programme, local communities assisted in outreach efforts, the Siak District government provided funding through the Tourism Office, and the National Amil Zakat Agency (BAZNAS) of Siak contributed additional training in digital media. Such collaborations enhance the programme’s reach and effectiveness, providing participants with broader support networks.

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Skelas has already facilitated significant milestones through KUBISA. “Skelas has collaborated with the Siak Tourism Office and also received funding support of IDR120 million (US$7,300) for the KUBISA 2024 Demoday event,” said Ramadani.

Additionally, BAZNAS provided financial assistance worth IDR60 million (US$3,600) to 10 participants.

One notable success story involves a business matching participant securing a product placement deal with Viera Oleh-Oleh, a major souvenir retailer in Pekanbaru. Another participant obtained a zero per cent capital loan to purchase an oven, illustrating the tangible benefits of the incubation programme.

Looking ahead, Skelas envisions a broader impact beyond Siak. “Skelas aims to become an incubator that not only operates locally in Siak Regency but also expands to Riau and across Indonesia,” said Ramadani.

To achieve this, the organisation is working towards obtaining BNSP certification for its incubation team and expanding its partnership network.

Measuring impact is also a priority. Skelas is exploring the Social Return on Investment (SROI) framework to assess the economic, social, and environmental value generated by its initiatives. By adopting these measurement tools, the organisation aims to refine its approach and drive long-term sustainable development.

Through initiatives like KUBISA, Skelas is not only fostering sustainable entrepreneurship but also demonstrating that environmental responsibility and economic growth can go hand in hand. By supporting MSMEs with training, funding, and strategic partnerships, the programme is laying the groundwork for a more sustainable business ecosystem in Indonesia.

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Image Credit: Skelas

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