In August 2024, BINUS University partnered with eLBajo Commodus Polytechnic in the International Community Development Program (ICDP) in Labuan Bajo, a super-priority tourism destination in Indonesia. This initiative engaged over 20 students, including participants from the University of New South Wales and Universiti Teknologi Malaysia, to collaborate with local Micro, Small, and Medium Enterprises (MSMEs). The program aimed to develop innovative, sustainable solutions to enhance MSME welfare and contribute to economic growth—aligning closely with the Sustainable Development Goals (SDGs).

This collaborative program reflects BINUS University’s commitment to fostering and empowering society, which is consistent with its vision of building the nation. Beyond its immediate outcomes, this initiative provided critical insights into gaps and challenges hindering the effective implementation of SDGs at the grassroots level.

Progress and Challenges in Indonesia’s SDG Journey

Since adopting the SDGs in 2015, Indonesia has made substantial progress in integrating these global objectives into its National Medium-Term Development Plans (RPJMN). As of December 2024, Indonesia has achieved approximately 62% of its 224 SDG indicators. However, the nation, like many others, faces significant obstacles, including economic disparities, environmental challenges, and social inequalities.

These broader challenges resonate with findings from the Labuan Bajo program, where localized issues reveal the nuances of achieving sustainable development.

Key Issues Identified During the Program

Economic Dependencies and Vulnerabilities
Tourism is the backbone of Labuan Bajo’s economy, but it is vulnerable to external shocks such as natural disasters. Stakeholders expressed concerns about the high cost of imported commodities and the limited diversification of income sources among local MSMEs. Many business owners, such as those producing traditional fabrics, rely heavily on supplementary income from farming, which is often unpredictable.

Innovation Gaps and Stakeholder Buy-In
The student-developed prototypes presented during the program highlighted the innovation potential. However, stakeholders indicated that local government and community buy-in remains a challenge. Without clearly demonstrating the added value these innovations bring, there is hesitancy to adopt them on a larger scale.

Identifying the Gaps in SDG Implementation

  1. Short-term Focus on Support Mechanisms
    While government assistance programs exist, community reliance on these short-term measures is prevalent. This mindset underscores the need for sustainable, long-term development strategies that empower MSMEs to build resilience and self-sufficiency.
  2. Lack of Market Linkages
    Many MSMEs have participated in government-led training programs, but the absence of direct access to consumer markets limits their ability to translate acquired skills into tangible outcomes. Establishing market connections is essential to unlocking their full potential.
  3. Innovation and Capacity Building Disconnect
    The effectiveness of student-led prototypes is contingent on fostering an innovation culture within the community. Strengthening partnerships between universities, local governments, and MSMEs is crucial to ensure that innovations are implemented and scaled.

The Way Forward: Bridging the Gaps

Based on the findings, BINUS University is poised to play a pivotal role in addressing these gaps. Key recommendations include:

  • Developing Long-Term Programs: Transitioning from short-term training to initiatives that embed sustainable practices within MSMEs. These programs should aim to build resilience by equipping businesses with the tools to thrive independently.
  • Strengthening Market Access: Establishing partnerships with external organizations to create market opportunities for MSME products, ensuring their economic viability.
  • Enhancing Stakeholder Engagement: Conducting awareness campaigns and workshops to foster a culture of innovation among local governments and MSMEs. This effort can build the necessary trust and buy-in for implementing new solutions.