Research Article

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

Table 3

Vulnerable analysis of stakeholders.

Business group/OrganizationExposure and sensitivity to the impactInstitutional capacity and adaptabilityAnalysis

Small and medium enterprises (SME’s)(i) Affected directly by the fulfilment of the SVLK standards and periodic surveillance obligations.
(ii) Sensitive to effects and on a particular scale can be a compassionate group (e.g., verification and surveillance costs for licensing processes)
(i) Financial and skill managerial aspects are the limited abilities.
(ii) Not having adequate human resources concerning meeting environmental standards.
(iii) Adaptability is limited and at risk of business continuity.
This group is vulnerable and can be very weak if there is no effort to increase capacity or ease of licensing, which is not the same as the criteria for large industries.
SME’s labour group(i) Does not have a labour organisation so that it is sensitive enough to the effect on the workplace company.
(ii) Exposures are higher than labour in large industries.
(i) Does not have sufficient capacity to respond to effects, both financially and managerially.
(ii) Adaptability is low and requires the support of stakeholders.
This group is classified as a group that is quite vulnerable if the effect lasts long enough and on a large scale of impact.
Women’s groups (labours, wives of the job)(i) Sufficiently sensitive to effects, even though they are not directly affected.
(ii) Exposure to the effect depends on the type of bond with the business actor (if the husband has terminated the contract with the business actor, then the women’s group becomes very sensitive and is at risk of losing additional sources of income for the family)
(i) Does not have managerial and financial strength, unless there is a women’s organisation that can facilitate cooperation and resolve conflicts with the company.
(ii) Adaptability is low and usually has no expertise that makes it ready for a change.
This group includes vulnerable groups of aspects of adaptability and sensitivity to effect.
Disabled groups (who work or are a burden to working families)Very sensitive to effects and at risk of losing livelihoodsIn general, no institution can strengthen the bargaining position of the group.This group is classified as a vulnerable group and needs stakeholder attention.