Denpasar, December 16, 2004
—The International Finance Corporation’s Program for Eastern Indonesia Small and Medium Enterprise Development, or PENSA, today signed a memorandum of understanding with the Association of Exporters and Producers of Indonesian Handicraft (ASEPHI) to strengthen its capacity to serve its members in a more professional and beneficial manner.
"The business association plays an important role in helping sustain the existence and development of the industry and its players, which mostly consist of small and medium enterprises," said Hans Shrader, program manager for PENSA’s business enabling environment program. "As part of our effort to support and promote SME development, we focus on strengthening business associations at the local level, in this case in Denpasar."
Agung Bagus Sanjaya, chairman of ASEPHI, added, "IFC-PENSA will provide technical assistance to ASEPHI Bali on activities that will strengthen and increase the association’s skills and enterprise, create new products and services, and support membership-related work and advocacy amongst ASEPHI’s members."
ASEPHI was chosen as a partner due to the sector’s growth potential and the vital revenue its members provide to Bali's economy. The organization's focus is also in line with IFC-PENSA's handicraft export promotion program, which works to develop links between manufacturers and their markets.
ASEPHI is a national business association whose members are companies or organizations interested or involvee in the handicraft industry. The objectives of ASEPHI Bali are to improve the positioning of Balinese handicrafts in the global market, to develop a conducive business climate for the handicraft community, to develop a relevant economic network through the handicraft community in Bali, and, within the handicraft community, to develop business relationships between members and improve the quality of human resources.
IFC-PENSA is one of a network of IFC technical assistance facilities supporting small and medium enterprises at the regional level. IFC is the private sector arm of the World Bank Group. The PENSA facility has a five-year mandate and has been funded by IFC and the governments of Australia, Canada, Japan, the Netherlands, and Switzerland, with initial commitments of $22 million.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
