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IFC Highlights Women’s Entrepreneurship in Indonesia:
IFC-PENSA and IWAPI Launch “Voices of Women in the Private Sector”
Jakarta, April 21, 2006The International
Finance Corporation’s Program for Eastern Indonesia SME Assistance, IFC-PENSA,
and the Indonesian Women’s Business Association, or IWAPI, recently launched
“Voices of Women in the Private Sector,” appropriately coinciding with
the anniversary of the birth of the country’s eminent women’s rights
activist, Kartini.
The study highlights the challenges and opportunities women entrepreneurs
in Indonesia face in managing and operating their businesses. “Women entrepreneurs
in Indonesia are making a significant contribution to the country’s economic
development,” said IFC’s Program Manager, Hans Shrader. “Yet disadvantages
in terms of the social mindset and access to education and capital still
present a major barrier for women’s entrepreneurship in Indonesia.”
More than 70 businesswomen in seven Indonesian cities, ranging from the
owner of a small batik shop in Yogyakarta to the owner of a crocodile farm
in Balikpapan, were interviewed on issues including customs and laws, education,
and disincentives in starting and running a business.
The initiative was driven by the fact that female-owned businesses represent
60 percent of the about 30 million micro, small, and medium enterprises
in Indonesia, according to estimates by the State Ministry of Cooperatives
and Small and Medium Enterprises. This statistic is also reflected in IWAPI’s
membership database, which indicates that 85 percent of its nearly 16,000
national members are owners of micro and small enterprises. Regardless
of whether they are involved in the micro, small, or medium sectors, these
women entrepreneurs not only provide valuable services and generate income
for themselves and their families, but also create jobs and make a significant
contribution to the country’s economy. Nevertheless, many women entrepreneurs
in Indonesia continue to face daunting challenges and barriers in operating
their businesses.
“The key to the problem of women’s role and position is public perception
that men are the heads of the household whereas women are housewives. Therefore,
women are expected to prioritize their role as a housewife at all times,”
said Reny Feby, owner of Reny Feby Jewelry in Jakarta. “This perception
must change so that women and men have equal opportunities.”
During a recent discussion, the State Minister of Women Empowerment, Dr.
Meutia Hatta, and IWAPI Chairperson Suryani Sidik Motik stressed the importance
of changing the social perceptions that inhibit women’s entrepreneurship
and of raising awareness about the significant contribution that women
entrepreneurs make to their families and ultimately to the country’s economy.
The country’s businesswomen also have problems in accessing finance that
in the end may deter them from formalizing their business. “Factors that
discourage women from applying for bank loans include high interest rates,
complicated procedures, and rigid collateral requirements,” said Sandra
Pranoto, Business Development Analysts on Women and Business from IFC-PENSA’s
Business Enabling Environment program.
Only through the joint efforts of all stakeholders can real changes be
achieved to provide Indonesia’s women entrepreneurs access to an environment
more conducive to doing business. Helping them overcome barriers to business
creation and expansion will not only support the economic empowerment of
women and the welfare of their families, it will also generate new jobs
and ultimately benefit the community in the areas they operate.
About IFC and IFC-PENSA
The mission of IFC, the private sector
arm of the World Bank Group, is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people’s
lives. IFC-PENSA is IFC’s technical assistance facility supporting small
and medium enterprise development in eastern Indonesia. The facility’s
Sustainable Supply Chain Linkages program creates business opportunities
in the forestry and furniture sectors by improving environmental management
and encouraging sustainability, especially in sourcing for good wood and
links to markets looking for good wood products. The IFC-PENSA facility
has a five-year mandate and has been cofunded by IFC, the Australian, Canadian,
Japanese, Dutch, and Swiss governments, and the Asian Development Bank,
with funding commitments of almost $25 million. For more information about
IFC, visit www.ifc.org.
About IWAPI
IWAPI was established in 1975 to develop
and strengthen businesses owned and managed by women by increasing its
members’ capacity to manage their businesses and improve their access
to technology, marketing, and funding. IWAPI also provides advocacy, technical
assistance, and networking services to its members.
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