In Jakarta
Nia Sarinastiti
Communication Officer
IFC-PENSA
Telephone: +62-21-5299 3134
Email: nsarinastiti@ifc.org


Jakarta, June 24, 2004—The International Finance Corporation and PENSA, IFC’s small and medium enterprise  facility for Eastern Indonesia, today released “Voices of the Private Sector.”  This publication presents the  “voices” of 19 business men and women from across Indonesia in varied sectors, and with diverse company structures.  Their thoughts, experiences, and anecdotes, tell the story of the day to day challenges faced by the Indonesian private sector.  It also  provides insights on  how private sector investment has been  affected by issues such as the decentralization process, fiscal uncertainties (tax-levies and fees), worsening infrastructure, and growing labor and legal issues.

“Our hope is that these messages drive Indonesian leaders to prioritize the issues raised by these “voices” and promote a multistakeholder partnership between the private sector, labor unions, regulators and others. Together they can develop and implement pragmatic, balanced reforms that can improve the country’s weak investment climate,” said IFC’s Indonesia Country Manager, German Vegarra. “We hope these “voices” are heard and supported by Indonesian leaders thereby supporting their sustainable growth but primarily to accelerate job creation in this country” Mr. Vegarra added.

“This publication provides background for the new government on what matters most to the private sector,” said Program Manager for Business Enabling Environment of IFC-PENSA Hans Shrader, ”Public policy makers in Indonesia face difficult choices today. We hope that this study can be a tool to help the new government encourage an improved investment climate as a means for creating jobs. It offers viable alternatives to costly and less sustainable policy options.”

IFC’s nearly fifty years experience in the developing world has demonstrated that  a strong climate that encourages a healthy and competitive private sector creates jobs and is a key to sustainable economic growth. Further encouragement of the private sector has a demonstrated ability to improve social mobility and expand opportunities around the world. The case for improving conditions could hardly be more powerful than in Indonesia, where 94 percent of those employed work for a private employer or are self-employed, according to World Bank and International Labor Organization data.

The report also provides select supporting data based on research by organizations such as the World Bank, the Association of South East Asian Nations, the International Labor Organization, and the Partnership for Economic Growth.

Note to Editors:

The International Finance Corporation (IFC) is the private sector arm of the World Bank Group.  IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.

PENSA, is one of the 10 IFC technical assistance facilities supporting small and medium enterprises. The PENSA facility has a five-year mandate and has been co-funded by IFC and the governments of Australia, Canada, Japan, Switzerland and The Netherlands, with initial funding commitments of $22 million.