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City-funded OK OCE goes beyond Jakarta
Whose money?: A man walks out of an OK OCE shop in Cikajang, South Jakarta, on May 15
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hose money?: A man walks out of an OK OCE shop in Cikajang, South Jakarta, on May 15. Outgoing Jakarta deputy governor Sandiaga Uno previously said he would expand the shop with the help of city-owned market operator PD Pasar Jaya. (Antara/Muhammad Adimaja)
As outgoing Jakarta deputy governor Sandiaga Uno bids farewell to City Hall, he plans to implement the city’s entrepreneurship program nationwide.
The One District One Center of Entrepreneurship (OK OCE), in which members are offered training and business loans, was implemented earlier this year and has coopted more than 40,000 people in the city.
Introducing the program during his 2017 gubernatorial election campaign, Sandiaga, who is now a vice-presidential candidate running with Prabowo Subianto, the Gerindra Party’s chairman, said he would implement the OK OCE program nationwide should he win the 2019 election.
“We are adjusting [the program] so that it can be adopted nationally,” he said.
The OK OCE Movement Community (PGO), a group that claims to be independently implementing the OK OCE program, said despite it being a Jakarta administration program funded by the city budget, it has been introduced in other provinces.
PGO chairman Faransyah Jaya said there was increasing interest from small business owners across the country regarding the OK OCE. OK OCE Kito in Palembang, South Sumatra and OK OCE Asik in Bandung, West Java, are to name a few.
“We’ve been planning to take the program to the national level, even before Sandiaga’s candidacy as vice president,” he said.
It is unclear how the group has financed its activities beyond the city, but according to apbd.jakarta.go.id, the city allocated Rp 38.3 billion (US$2.66 million) to hold entrepreneurial training sessions and assistance in five municipalities and one regency.
It has also allocated up to Rp 23 billion to establish a coworking space and Betawi stores throughout the city.
All of these activities are managed by the PGO, the legal status of which is still unclear.
After months of being implemented based on Jakarta Governor Instruction No. 152/2017 on the development of entrepreneurship, the OK OCE program will soon have a gubernatorial decree to give it legal grounding.
“The draft has been finalized. [Jakarta Governor Anies Baswedan] will sign it next week,” Jakarta Cooperatives, Micro, Small and Medium Enterprises Agency head Irwandi said on Monday.
The decree will stipulate for the implementation of the OK OCE program. Through the agency, the city has disbursed Rp 8.2 billion from its budget this year. “The money is aimed at covering entrepreneurial training costs, such as logistical expenses and trainers fees,” he said, but refused to elaborate on the details of the training program locations and logistical expenses.
The decree will also be the basis for a cooperation agreement between the city administration and PGO.
In the OK OCE program, the PGO will provide coaches and trainers, create training modules and syllabus as well as hold training and assistance sessions.
Irwandi said the budget does not include capital for OK OCE loans because it is the responsibility of city-owned Bank DKI.
Of the 48,000 small businesses registered as OK OCE members, only 27,000 have taken part in training sessions held by the PGO. As of today, only 150 members have received loans from Bank DKI, ranging from Rp 3 million to Rp 10 million.
Refuting the situation as a sign of low success, Faransyah said most of the OK OCE participants found difficulties when trying to realize their business plans.
“We have the most participants in the training sessions,” Faransyah said.
“The training gets harder as they are required to implement their business plan and make decent financial reports, from which the bank considers whether to lend to them. Most are unable to pass that step,” he explained.
Both Faransyah and Irwandi said Sandiaga’s participation in the election meant the PGO would be able to operate not only in Jakarta, but also other provinces.
“The OK OCE is the brand for the entrepreneurial program. It’s not owned by the city administration or Sandiaga himself. We have the dream and right to take it to other provinces,” he said.
