Monitoring Implementation Impact of the EU-Indonesia’s VPA on SME Livelihood

Table 2

The ToC analysis of the implementation effect of the SVLK on SME’s livelihood.

Indicator	Expected change	Direct/short term effect		Secondary/mid-long term effect
		Description	Level	Description	Level
Effect of VPA
(i) Welfare	Labour welfare and implementation of career paths	Increased income and career	0	Increased welfare of labour and family	+
(ii) Protection	K-3 (occupational health and safety) protection	Increased K-3 implementation	+	Increased of labour health, safety, and rights	+
(iii) Skills	Labour appointed to participate in the skill training program	The increased capability of labour	0	Increased skill and salaries of labour	+
(iv) Economic condition	Workforce absorption of local labour	Improved job opportunity for local labour	+	Increased economic condition	++
Influence for vulnerable
(i) SME’s perception	The SVLK positive for livelihoods	SVLK is a guarantee of the legal product	+	SVLK is a positive effect for livelihood	++
(ii) Policies and regulation	Local government adopt SVLK that support the livelihood	Local government support SVLK regulation	+	SVLK support livelihood on SME’s	++
(iii) Business practice	Export and domestic market	Reduces overhead transaction costs	+	Increased profitability	++
(iv) Issue visibility	Public raises of SVLK and livelihoods issue to the higher priority	Improved SVLK to support the livelihood	+	SVLK higher priority to effect positive of livelihood	++

Note: the level effect of the SVLK on SME’s livelihood by ToC. ++, strong positive effect; +, positive effect; 0, neutral or no effect; -, negative impact; - -, strongly negative effect.