Banda Aceh, 27 October 2005
— The International Finance Corporation today established a program in Banda Aceh to provide assistance to small and medium enterprises in Aceh and Nias. The Private Enterprise Partnership-Aceh & Nias is a multi donor initiative that will support the growth of private enterprises in the areas affected by last year’s tsunami.
Small and medium enterprise development is a critical part of IFC's strategy in Indonesia. “IFC’s Private Enterprise Partnership’s grant-funded technical assistance combined with our investment capability offers a powerful combination to support smaller companies,” said IFC East Asia and the Pacific Director Javed Hamid. “Aceh and Nias need more sustainable private businesses to create jobs and opportunities that are critical to poverty reduction.”
“The objective of IFC’s PEP-Aceh & Nias is to improve business opportunities for small and medium enterprises by increasing access to finance, promoting an improved regulatory environment, and creating sector-specific opportunities for sustainable growth, especially in the agribusiness sector,” said acting IFC-PENSA Acting General Manager Hans Shrader. IFC-PENSA manages Private Enterprise Partnership-Philippines and Private Enterprise Partnership-Aceh & Nias. Strengthening links in the supply chain between large companies and their local communities is fundamental to increasing business growth for small and medium enterprises and ensuring local economic participation,” said Shrader.
Aceh-Nias Reconstruction and Rehabilitation Agency or BRR-Aceh/Nias welcomed the new IFC initiative. “We believe that IFC’s Private Enterprise Partnership-Aceh & Nias will help us support Aceh’s economic development drawing on previous experiences in promoting businesses in post-disaster and conflict areas in other parts of the world,” said BRR-Aceh/Nias Deputy for Economic and Business Development Iskandar.
IFC Private Enterprise Partnership-Aceh & Nias will draw extensively on IFC-PENSA, the Program for Eastern Indonesia SME Assistance, and other IFC’s regional resources supporting smaller businesses. Building on successful existing programs, IFC Private Enterprise Partnership-Aceh & Nias will place a heavy emphasis on supporting access to finance, improving the business enabling environment, and facilitating links between local smaller companies and those with larger market reach in the agribusiness sector.
IFC-Private Enterprise Partnership - Aceh & Nias has a four year mandate with an initial funding commitment of $1 million from IFC. Additional donor funding is being sought from other donor agencies that have interest in supporting the growth of small and medium enterprises in Aceh and Nias.
About IFC
The International Finance Corporation, the private sector arm of the World Bank Group, promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies.
IFC and its donor partners fund technical assistance programs and facilities around world, with combined annual budgets exceeding $50 million and more than 900 people on the ground. These facilities design and implement assistance programs that meet key needs of private sector development
From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit www.ifc.org.
About IFC-PENSA
IFC-PENSA is IFC’s technical assistance facility supporting small and medium enterprise development in Eastern Indonesia. The IFC-PENSA facility has a five-year mandate and has been co-funded by IFC, the Australian, Canadian, Japanese, Netherlands, and Swiss governments, and the Asian Development Bank with funding commitments of almost $25 million. IFC-PENSA also manages IFC Private Enterprise Partnership-Philippines and IFC Private Enterprise Partnership-Aceh & Nias.
