LUBUK BANGKAR, Jambi, 2 September 2019 – The United Nations Development Programme (UNDP) together with the National Zakat Board (BAZNAS), Bank Jambi and the provincial government of Jambi today launched a partnership to launch an agro-tourism village in Jambi, one of Indonesia’s key commodities’ pockets.

The partnership is part of a larger collaboration with the aforementioned partners on Sustainable Development Goals (SDG) initiative which saw the development of a micro-hydro plant. The micro-hydro provided much-needed electricity to more than 4,000 residents in Lubuk Bangkar village and surrounding areas. Under this new partnership, residents in Lubuk Bangkar village will now be able to process local commodities such as coffee into finished products and attract visitors.

Lying on 1000 meters above sea level, the highland village of Lubuk Bangkar offers a scenic views of coffee plantation and vegetable field dotting the green hills. This initiative was launched on Monday (2/9), attended by members of Baznas, ir. Nana Mintarti MP, Director of Distribution and Utilization of Zakat BAZNAS, Irdan Syauqi Beik, PhD; UNDP Indonesia Deputy Representative, Sophie Kemkhadze and Deputy Regent  of Sarolangun, Hillalatil Badri

The micro-hydro was built through a blended financing mechanism system using funds from zakat – an obligatory payment for Muslim – local financial institution Bank Jambi, and Global Environment Facility. It was the first SDGs infrastructure initiative that used funding from zakat.  The village initiative was the second SDGs initiative using zakat managed by Baznas.

"Thank you for the support from the Bank of Jambi, the Provincial Government of Jambi and UNDP so that the potential development program of the Lubuk Bangkar Village can continue. The participation of the Lubuk Bangkar community is also the key to an ideal program implementation.” Said BAZNAS representative, Ir Nana Mintarti, MP

UNDP Indonesia Deputy Resident Representative Sophie Kemkhadze said harnessing local economy is one concrete way to bring SDGs closer to communities.

“Implementing SDGs at the local level requires an integrated approach. UNDP believes that local economic development can effectively reduce inequality, foster social cohesion from the bottom up, generate local business opportunities and much-needed jobs. We look forward to seeing the fruition of the initiatives which I’m sure will involve marginalized communities, particularly women in the decision-making process,” said Ms.Kemkhadze.

The outputs from the this livelihood initiative is to improve the sustainability of agricultural sector in the village by providing a technical assistance both on-farm and off-farm. After the identification of the potential aspect in Lubuk Bangkar, value-addition opportunities can be provided to the local farmers for the significant profit achievement. The improvement of the production equipment through soft loans and targeted micro grants are expected in this tourism village.

UNDP hopes through this partnership could help in eradicating poverty and prosperous communities in achieving SDGs in particularly goal no 1 (No Poverty). The partnership is done under UNDP Indonesia’s Innovative Financing Lab which has been an integral part in the country’s pursuit on alternative SDG funding, particularly in harnessing the full potential of Islamic finance.

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For more information, contact:
Tomi Soetjipto – UNDP Communication Specialist, suryo.tomi@undp.org
Greget Kala Buana, Islamic Finance Specialist, greget.buana@undp.org