Accelerating Local Businesses Development Post-Tsunami and COVID-19 in Palu

DECEMBER 2020 | UCLG ASPAC and CUF have supported local government of Palu in its effort to recover the city’s local economy through KUBE programme. Hardly hit by Tsunami in 2018, local government of Palu has re-activated the “Kelompok Usaha Bersama” (KUBE) or collaborative works programme initially established in 2016. Through KUBE, local government of Palu provides opportunities for local people to submit business proposals and to receive support. The goal is to motivate and accelerate establishment of new Micro and Small Medium Enterprises (MSMEs) in Palu, post disaster events, including the COVID-19 recovery efforts, thus supporting local economic development.

Support from Cities Unies France (CUF), in collaboration with UCLG ASPAC, has enhanced efforts of local government of Palu city in conducting the post-disaster programme through KUBE. The support includes goods procurement for selected proposals and training/capacity building activities to run the business. UCLG ASPAC has completed the procurement process and handed over the donations to selected businesses. In 2021, UCLG ASPAC will continue the support by running the capacity building activities.

In 2020, the Social Department of Palu City recorded that from KUBE, they received more than 150 business proposals from local community. From that number, 76 KUBE proposals have been selected and granted support. In 2021, the local government of Palu targets to support approximately 1600 KUBE proposals to accelerate the economic recovery process due to the impact of COVID-19 pandemic. To be able to do that, local government of Palu has prepared to allocate funding from the local budget, social aid post for COVID-19, and local businesses development budget post.

City of Palu experienced major impact of disasters during 2018-2019. The condition is worsened by the COVID-19 pandemic. The support programme will bring benefit for community and help strengthening relations between local government of Palu and the community. The programme has also shown that city-to-city cooperation and solidarity especially in sharing needs is important not only in the time of crisis but also during the recovery phase.

Handing Over Goods Procurement from UCLG ASPAC to Selected KUBE Businesses:

  • Lingkar Hijau (urban farming and resiliency, contributing to waste management and agriculture)

  • Arsyilah Bakery (bakery shop managed by housewives)

  • Gawalise Printing (clothes printing business managed by youth)