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The city of Tebing Tinggi in North Sumatra has established a business clinic (Klinik Bisnis or Klibi) to support micro, small and medium enterprise (SME) development. Klibi is a consultancy service for small businesses that operates under the auspices  of Tebing Tinggi’s SME development office. Klibi aims to remove bureaucratic red tape in order to open up markets and make business loans and permits more accessible to SMEs. LGSP has been working to strengthen Klibi’s organizational structure, helping it to develop its strategy, vision and mission, and service standards, and to recruit skilled staff to provide technical assistance to small entrepreneurs.  

 

Tebing Tinggi has been using LGSP’s Service Improvement Action Planning (SIAP) model to strengthen service delivery since 2006. The SIAP model has been used to bring together and then integrate a range of public services under one roof—in this case, the Klibi business clinic.

 

Amir Riza, head of Klibi, explains that Tebing Tinggi has over 4,000 micro entrepreneurs employing 3-5 people each. However, most small entrepreneurs have poor business management skills. ”They don’t understand basic administration, they operate in very small markets, and they cannot easily obtain business loans. They could make a significant contribution to the local economy if they were managed better.” 

 

Klibi helps these local entrepreneurs to analyze and access broader markets and apply for bank loans, and provides training in basic administration and accounting as well as business management skills. ”With marketing support from Klibi, my snacks are now even being stocked by the large retailers in Medan,” says Karmila, one of Klibi’s clients.

 

In March, Klibi business clinic shared with other government departments its experiences and good practices in delivering prompt, reliable, affordable, and professional public services to the local community. The mayor of Tebing Tinggi, Abdul Hafiz Hasibuan, was so impressed that he urged the other departments to apply the SIAP model to improve their own service delivery. On April 29-30, officials from 12 local government departments were trained by LGSP on the use of SIAP tools to improve service delivery.

 

Klibi’s good practices are now also being shared on a national level, at a Ministry of Home Affairs nationwide roadshow in April-May to disseminate public policy on service management and regional cooperation. This roadshow is allowing the SIAP tools developed by LGSP to be showcased to local governments throughout Indonesia.