Local Economic Development in Palu City: Closer Look at Local Businesses and How They Support City Recovery

THE rehabilitation programme in Palu was launched in October 2019 with the solidarity initiative under platform of UCLG Taskforce for Territorial Prevention and Management of Crisis. It is fully supported by Cities Unies France (CUF) and implemented by UCLG ASPAC. The programme was started in January 2020 with stakeholders mapping analysis among institutions who are actively involved in the recovery phase in Palu. According to the preliminary needs assessment, the Disaster Management Agency of Palu City (BPBD) requested UCLG ASPAC’s support to help identify and coordinate with multi-stakeholder as it aims to minimise the gaps and accelerate the build back better. The result shows that most of humanitarian and aids agencies were helping on physical or infrastructure aspect and much less of social livelihood affect.

UCLG ASPAC, with the full support from CUF, selected beneficiaries to support the city’s economic recovery. Below are profiles of the three beneficiaries:


Lingkar Hijau Community was established in 2018, right after the Tsunami stroke Palu. The mission is to advocate eco-friendly urban lifestyle and strengthen participation of community on food security and sustainability. The founders are five people who are aware of the importance of food security and resilience post-disaster. Based on the disaster experience in 2018, Palu faced food shortage and insufficiency that triggered riot to get food.

Lingkar Hijau Community’s Businesses:

  • Urban farming and agriculture for community;
  • Waste management (composting);
  • Recycling and reusing second hand materials such as canes, plastics, and bottles.


Gawalise Printing is located in Balaroa village, one of areas in Palu City hardly hit by the liquefaction. The printing business was initiated by five people who lost their jobs due to the disaster in 2018. The idea was coming from one of the founders who has the working experience with printing store.

Gawalise Printing’s Businesses:

  • Cloth printing and design
  • Providing design service for banner and backdrop


Arsyila Bakery was initiated by five housewives in Balaroa Village. The Bakery was started before the disaster (2010) by Ms. Nuraini and revenue depended on daily order from traditional market nearby (Balaroa Market). Ms. Nurani has expressed her commitment to run the business and shared her background on bakery business as well as expectations from this programme. She mentioned that the cakes and bakery were sold only to the traditional market every day and made based on the order. She also mentioned the possibility of using online marketing, through Facebook or Instagram. In the future, the plan includes selling the products on local online marketplace such as Go-food and Grab-food.

The support to Palu programme will continue until June 2021 and will provide the learning exchange with other local governments in the region regarding the recovery experience, build the capacity and knowledge focusing on resilience and the effectiveness of early warning system. At the end the programme, a public facility will be built as a learning centre to support local economy, and build stronger and more resilient community.