IFC Helps Facilitate Public-Private Business Forum to Improve Business Climate in Aceh
In Jakarta:
Ariavita Purnamasari
Phone: (+62) 811891571
E-mail: APurnamasari@ifc.org
In Hong Kong:
Andrew Mak
Phone: (+852) 25098110
E-mail: AMak@ifc.org
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 www.ifc.org.
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