Banda Aceh, Indonesia, November 27, 2008
—IFC, a member of the World Bank Group, is helping accelerate business-climate reforms in Indonesia’s Aceh province by supporting the provincial government’s effort to identify constraints to business and investment.
The provincial government of Aceh and the Aceh Chamber of Commerce and Industry today hosted the first Aceh Business Forum, which provides a platform for public-private joint working groups to report on identified constraints affecting Aceh’s business and investment climate. The forum will produce a set of issues and recommendations for the Aceh government to take into account when designing policy reforms.
“To develop our fragile economy, the government of Aceh encourages the private sector to proactively attract investments and promote job creation in key sectors including agriculture, tourism, trade and mining,” said Muhammad Nazar, Vice Governor of Nangroe Aceh Darussalam. “Through the Aceh Business Forum, the government intends to stimulate feedback from the private sector on the major constraints affecting the business climate. We will also solicit policy recommendations to further develop the private sector in Aceh.”
The forum is being facilitated by IFC, with support from the Australian Agency for International Development.
“The Aceh Business Forum is a key element of what we hope will be an ongoing public-private dialogue. IFC is pleased to facilitate this process, with support from AusAID,” said Russell Muir, IFC Regional Sector Leader for Business Enabling Environment. “The objective of the forum is to get a better understanding of the real constraints affecting the business climate in Aceh and then to address these problems in a transparent way, which will encourage new investment.”
“Based on IFC’s experience in facilitating similar dialogues across the globe, we anticipate that this process will accelerate trust and foster a common understanding between the Government and the private sector,” Muir said. “We also hope that new employment opportunities and increased economic activity will result from these efforts.”
The Aceh Business Forum has established three working groups: Agribusiness; Regulation; and Tourism, Trade and Industry. About 50 Acehnese business owners representing Aceh Besar, Banda Aceh, Sabang, Pidie Jaya, Bireun, Aceh Utara, Aceh Tengah, Bener Meriah, and Medan have actively participated in eight working group meetings.
Challenges identified by the two private sector working groups, Agribusiness, and Tourism, Trade and Industry, are similar: regulatory uncertainty, inadequate infrastructure, and limited access to finance and markets. Going forward, the joint working groups will continue to meet to develop proposals to overcome these challenges, and to monitor the effectiveness of implemented reforms.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
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