Jakarta, Indonesia, November 11th, 2003 — The Dharma Bhakti Astra Foundation and PUPUK today announced the launch of their joint venture, Mitra Pengembangan Bisnis (MPB). Through training and technical assistance, MPB will support the development and growth of local consultants and business service providers to small business. Based in Bali the new venture will initially focus on the handicraft and furniture sectors. The establishment of MPB, will be supported by the IFC’s Program for Eastern Indonesia SME Assistance (PENSA).
Improving access to business services is crucial to supporting SME growth. Strengthening the ability of local consultants to deliver services, will offer opportunities for SMEs to improve the value of their own products and services.
“Long term sustainable growth can only be achieved by developing a market mechanism for the delivery of business development services on a fee for service basis” said Harold Rosen, the Director of the IFC’s SME department who attended the ceremony. “Developing consultants to small business is a core pillar of IFC programs around the world. We are particularly excited at being able to bring our international perspective to this Indonesian venture”.
PUPUK have extensive experience in training consultants, however this is a new departure for the Dharma Bhakti Astra Foundation.. “We are extremely excited about the launch of MPB” said Ibu Krisni Murti, Chair of the Dharma Bhakti Astra Foundation. “It will provide an important platform to help strengthen the capabilities of local business service providers and importantly to develop a stronger market for these services in Indonesia.”
Bali has been chosen as a headquarters for this new venture. SMEs dominate the supply chain in the handicraft and furniture sectors, and it is expected that better delivery of business services will result in improved production techniques, enhanced marketing skills, and better general business management at the SME level. By being based in Bali MPB will co-ordinate closely with PENSA’s Trade and Export Promotion program which is also based there.
MPB will be capitalized jointly by PUPUK and the Dharma Bhakti Astra Foundation. PENSA will provide the initial office space and will help to source and develop the training material that MPB will use.
The mission of IFC 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. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries.
Dharma Bhakti Astra Foundation is a non profit organization established by PT Astra International TBK in !980, created for the purpose of facilitating and developing SMEs. It has participated in increasing national prosperity by assisting the competitiveness of Indonesian SMEs by providing strategic information through a highly focused corporate plan.
PUPUK (Perkumpulan Untuk Peningkatan Usaha Kecil ) is a non profit, independent and non political organization, formed in Bandung in1988, works to support a fair development process in SME that emphasizes on sustainable development principles. Through its activities, PUPUK works with SMEs with potential for growth who can contribute to improve their environment and the local economic capacity. PUPUK also works with small business located in low-income areas and far from economic center.
