Abstract

This case study examines a key sustainability challenge of small and medium enterprises in Indonesia: compliance with local labor quota regulations requiring over 50% local workforce participation in several Indonesian regions. Findings from interviews indicate two main obstacles-urban migration reducing the local labor pool and inadequate skills among remaining residents. The study identifies women’s empowerment as a potential solution, addressing both labor shortages and sustainable development objectives. Three initiatives were implemented: (1) promoting work-life balance through structured day shifts, women’s clubs, and menstrual/maternity policies; (2) establishing anti-harassment frameworks via prevention training and confidential reporting systems; and (3) advancing women’s technical competencies and leadership through targeted training and mentorship. Applied within a Cikarang-based medium manufacturing enterprise since 2018, these interventions increased the number of local female employees from 21 in 2018 to 49 in 2020. The findings demonstrate that empowering local women enhances workforce sustainability, enterprise competitiveness, and alignment with Sustainable Development Goal 5 (Gender Equality), fostering long-term business viability and inclusive industrial growth.

Keywords: Sustainability; Women’s empowerment; Medium manufacturing enterprises; Local labor quota; Indonesia; Sustainable development goals