IFC Launches Small and Medium Enterprises Initiative in Aceh and Nias

Nia Sarinastiti 
Email: nsarinastiti@ifc.org




Banda Aceh, 27 October 2005— The International Finance Corporation today 
established a program in Banda Aceh to provide assistance to small and medium 
enterprises in Aceh and Nias. The Private Enterprise Partnership-Aceh & Nias is 
a multi donor initiative that will support the growth of private enterprises in 
the areas affected by last year’s tsunami.

Small and medium enterprise development is a critical part of IFC's strategy in 
Indonesia. “IFC’s Private Enterprise Partnership’s grant-funded technical 
assistance combined with our investment capability offers a powerful 
combination to support smaller companies,” said IFC East Asia and the Pacific 
Director Javed Hamid. “Aceh and Nias need more sustainable private businesses 
to create jobs and opportunities that are critical to poverty reduction.” 

“The objective of IFC’s PEP-Aceh & Nias is to improve business 
opportunities for small and medium enterprises by increasing access to finance, 
promoting an improved regulatory environment, and creating sector-specific 
opportunities for sustainable growth, especially in the agribusiness sector,” 
said acting IFC-PENSA Acting General Manager Hans Shrader. IFC-PENSA manages 
Private Enterprise Partnership-Philippines and Private Enterprise 
Partnership-Aceh & Nias. Strengthening links in the supply chain between large 
companies and their local communities is fundamental to increasing business 
growth for small and medium enterprises and ensuring local economic 
participation,” said Shrader.

Aceh-Nias Reconstruction and Rehabilitation Agency or BRR-Aceh/Nias welcomed 
the new IFC initiative. “We believe that IFC’s Private Enterprise 
Partnership-Aceh & Nias will help us support Aceh’s economic development 
drawing on previous experiences in promoting businesses in post-disaster and 
conflict areas in other parts of the world,” said BRR-Aceh/Nias Deputy for 
Economic and Business Development Iskandar.

IFC Private Enterprise Partnership-Aceh & Nias will draw extensively on 
IFC-PENSA, the Program for Eastern Indonesia SME Assistance, and other IFC’s 
regional resources supporting smaller businesses. Building on successful 
existing programs, IFC Private Enterprise Partnership-Aceh & Nias will place a 
heavy emphasis on supporting access to finance, improving the business enabling 
environment, and facilitating links between local smaller companies and those 
with larger market reach in the agribusiness sector. 

IFC-Private Enterprise Partnership - Aceh & Nias has a four year mandate with 
an initial funding commitment of $1 million from IFC. Additional donor funding 
is being sought from other donor agencies that have interest in supporting the 
growth of small and medium enterprises in Aceh and Nias. 

About IFC 
The International Finance Corporation, the private sector arm of the World Bank 
Group, promotes sustainable private sector investment in developing and 
transition countries, helping to reduce poverty and improve people’s lives. 
IFC finances private sector investments, mobilizes capital in the international 
financial markets, helps clients improve social and environmental 
sustainability, and provides technical assistance and advice to governments and 
businesses. Its 178 member countries provide its share capital and collectively 
determine its policies.

IFC and its donor partners fund technical assistance programs and facilities 
around world, with combined annual budgets exceeding $50 million and more than 
900 people on the ground. These facilities design and implement assistance 
programs that meet key needs of private sector development

From its founding in 1956 through FY05, IFC has committed more than $49 billion 
of its own funds and arranged $24 billion in syndications for 3,319 companies 
in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 
was $19.3 billion for its own account and $5.3 billion held for participants in 
loan syndications. For more information, visit www.ifc.org.

About IFC-PENSA 
IFC-PENSA is IFC’s technical assistance facility supporting small and medium 
enterprise development in Eastern Indonesia. The IFC-PENSA facility has a 
five-year mandate and has been co-funded by IFC, the Australian, Canadian, 
Japanese, Netherlands, and Swiss governments, and the Asian Development Bank 
with funding commitments of almost $25 million. IFC-PENSA also manages IFC 
Private Enterprise Partnership-Philippines and IFC Private Enterprise 
Partnership-Aceh & Nias.