Home to more than 200 million people and one of the largest economies in East Asia, Indonesia has a dynamic private sector. IFC plays a role in helping businesses navigate the challenges of this market through the demonstration impact of its investment projects, offering services to small and medium enterprises, and providing intellectual leadership to promote a better business environment and sustainable development through the private sector.
IFC has committed financing of $2.6 billion to 81 projects in Indonesia since 1968. Through the newly established IFC Program for Eastern Indonesia SME Assistance, or PENSA, IFC has intensified efforts to support small and medium enterprises. IFC and IFC-PENSA published Voices of the Private Sector in 2004 to help identify priority areas for improving the business environment.
Our investments Indonesia exhibit IFC's commitment to building long-term partnerships with clients. Our repeat investments in a manufacturer of synthetic fiber, South Pacific Viscose, will help the firm achieve self-sufficiency in power and increase the sustainability of its production. We recently helped the Wings Group expand into the food and beverages sector, creating supply chain links with smaller businesses that benefit the local community. And we have expanded our support for Bank NISP, one of the most dynamic private sector banks in Indonesia. The funding will help diversify the bank's liability structure, support its core lending to smaller businesses, and help it scale up other activities, such as mortgage lending, that require longer-term funding.
Indonesia's economic growth poses environmental and social challenges. Clean air and water, biodiversity, fisheries, fertile soils, social harmony, and quality of life are at risk due to development. IFC is actively demonstrating the business benefits of managing these issues well and promoting sustainable development.
