Banda Aceh, Indonesia, December 3, 2009
—IFC, a member of the World Bank Group, is helping the Aceh provincial government accelerate reforms by facilitating public and private sector dialogue to identify actions needed to improve investment and create jobs in Aceh. The effort is being supported by the governments of Australia and Indonesia.
IFC is working through its program, Investment Climate Advisory Services of the World Bank Group, to co-host the second Aceh Business Forum together with the Aceh provincial government and the Aceh Chambers of Commerce and Industry. The forum serves as a platform for private sector working groups to present the government with their recommendations for addressing issues affecting the business climate in Aceh. This forum also provides opportunities for the government of Aceh to report on the reforms implemented in the past year and planned in the future.
“Private sector development is an important driver of Indonesia’s economic growth,” said Geoffrey Walton, Investment Climate Advisory Services Business Line Leader for East Asia and Pacific. “Strong collaboration between the government and the private sector is essential in establishing a favorable investment climate, thus helping businesses grow.”
More than 150 Aceh entrepreneurs from small, medium, and large enterprises have been participating in working group meetings since 2007. In 2009, 12 working groups meetings identified issues such as the absence of regulations and clear policies, inadequate infrastructure, limited access to markets and financing, inadequate human resources, and high business operational costs. The first Aceh Business Forum was held in November 2008.
Based on the recommendation from the trade, industry, and agribusiness working groups to help small and medium enterprises obtain access to credit, the Bank Pembangunan Daerah has cooperated with Sparkassen Bank Foundation International Coorporation (SBFIC) to provide SME loans of 5 million to 15 million rupiah. To support export and import, a working group recommended that the government immediately improve port facilities. Two major ports are currently being rebuilt; one in Langsa, East Aceh and the other in Malahayati, which is the biggest port near Banda Aceh
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. It is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries – including by supporting Aceh government and private sector cooperation through Aceh Business Forum.
About the Investment Climate Advisory Services of the World Bank Group
The Investment Climate Advisory Services of the World Bank Group helps governments implement reforms to improve their business environment, and encourage and retain investment, thus fostering competitive markets, growth and job creation. Funding is provided by the World Bank Group (IFC, MIGA, and the World Bank) and over fifteen donor partners working through the multidonor FIAS platform.