Sahabat Cipta Foundation

Technical Capacity


Sahabat Cipta applies value chain development approach aiming to make sustainable systemic change in the market that improves income and livelihoods of smallholder farmers and entrepreneurs in specific economic sector.

 A value chain is a structure of relationships and processes, constructed by one or more economic functions performed by different market players in a market system of particular product or service. Being at the lower end of the economic pyramid, smallholder farmers and entrepreneurs most often get the least economic incentive for functions they performed and remain poor.


Key Interventions

From experience, Sahabat Cipta has identified several key factors that would enable smallholder farmers and entrepreneurs to take advantage of market opportunities and improve their economic activity, income and ultimately their livelihoods. These key factors include: farmers and entrepreneurs’ technical capacity, access to business resources, technology and market information; and market regulations. In its interventions Sahabat Cipta focuses on facilitating positive and sustainable change in these key factors.

 Sahabat Cipta interventions typically include:

§  building technical capacity;

§  improving production techniques;

§  building organizational capacity;

§  facilitating access to business resources and market links;

§  facilitating public-private dialogue and cooperation;

§  facilitating pro-poor growth regulation advocacy.



In its interventions Sahabat Cipta identifies root causes of the problems that hinder smallholder farmers and entrepreneurs from improving their economic activity, and key players or service providers in the market system where farmers and entrepreneurs operate. Working with these partners, Sahabat Cipta facilitates systemic change to overcome the problems. These partners can include: associations, small, medium or large enterprises with potential to develop inclusive business model and make systemic change, and public or private financial and other service providers.



YSC's systemic approach implies that we assume a facilitator role. This means we work through partner organizations to reach our target beneficiaries. In case no institution such as government extension services or training providers are available, YSC mobilizes or activates key stakeholders to jointly establish processes to provide skills for their respective rural population. In most cases, YSC mobilizes farmers groups, community based organizations, and alike. Our interventions are designed to equip key stakeholders (e.g. local governments, farmers organizations, rural community learning centers, etc.) with the competencies, experience and processes that ensure viable access to relevant skills for the rural poor. 

A rural skills development system can be illustrated as the following: 

Intervention Process

The followings are typical steps taken by Sahabat Cipta in designing and implementing interventions:


1.       Market assessment

Detailed evaluation and analysis of the relevance of product or services offered by smallholder farmers and entrepreneurs and the market potentials to identify potential value chain interventions likely to bring about systemic change.


2.       Value chain analysis

Identification of key players in the value chain, incentives of their participation, and root causes of the problems that hinder smallholder farmers and entrepreneurs for gaining more incentives from their economic activities in the system. Analyzing root causes of the problems is priority in this process for Sahabat Cipta in designing the interventions. At this stage Sahabat Cipta also identifies potential partners (embedded service providers, service providers, public authorities, and associations) to collaborate in implementing the intervention activities. Experience shows that involving partners with different incentives best serves the interest of smallholder farmers and entrepreneurs.


3.       Result chain development

A result chain diagram shows how different interventions can deliver certain outputs and outcomes and expected impact. With the diagram, Sahabat Cipta can select intervention(s) that is most likely to result optimum impact with the limited project resources. The result chain diagram is the basis for developing logical framework table, which describe intervention activities and quantitative indicators of achievements in more detail.


4.       Intervention design

Having developed the result chain and selected the intervention, Sahabat Cipta designs intervention activities that aimed to address root causes of the problems and enable smallholder farmers and entrepreneurs improving their economic activities and income in the market. Most often such intervention involves capacity building and providing access to business resources (i.e. input supplies, technology, finance, or market information). Sometimes, however, it involves revising or revoking regulations that restricts such accesses for smallholder farmers and entrepreneurs.


5.       Implementation

Sahabat Cipta does not work directly with targeted beneficiaries. Instead, it works with partners; service providers, individuals or organizations capable of making change in the market system of the targeted value chain. In implementation, Sahabat Cipta positioned itself as facilitator; it links and promote cooperation between potential partners, provides specific information resources, technology and market information, and recommends ways to expand their businesses.


6.       Monitoring and evaluation

Sahabat Cipta develops monitoring plan with specific and measurable indicators that can inform management and provide evidence on effectiveness and impact of the intervention. Baseline data is collected at the early stage of implementation to monitor progress of achievements during implementation, and to measure impact of the intervention upon completion of the implementation through an impact study exercise.


7.       Sustainability

Playing the role of facilitator, Sahabat Cipta develops local capacity and promote cooperation among key players in the targeted value chain system through a win-win incentive mechanism, which is established on a solid market base and viable business model. This way, Sahabat Cipta leaves behind a strengthened local system able to sustain the market intervention on its own.

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Sahabat Cipta Foundation

Jl. Mampang Prapatan XIV No. 47

Jakarta 12790, Indonesia

Tel. +62 21 7919 8690

Fax. +62 21 7919 8691 

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