Denpasar, December 15, 2004 – The International Finance Corporation’s Program for Eastern Indonesia Small and Medium-sized Enterprise Development, or PENSA, today signed a memorandum of understanding with the Association of Exporters and Producers of Indonesian Handicraft (ASEPHI) to strengthen ASEPHI's competency in serving its members in a more professional and beneficial manner.
"The business association plays an important role in helping sustain the existence and development of the industry and its players, which mostly consist of small and medium enterprises," said the Program Manager for PENSA’s Business Enabling Environment program, Hans Shrader. "As part of IFC-PENSA’s effort to support and promote SME development, we focus on strengthening business associations at the local level, in this case in Denpasar."
"IFC-PENSA will provide technical assistance to ASEPHI Bali on activities that will strengthen and increase the association’s skills and enterprise, create new products and services, and support membership-related work and advocacy amongst ASEPHI’s members," said the chairman of ASEPHI Agung Bagus Sanjaya.
ASEPHI was chosen as a partner due to the sector’s growth potential and the vital revenue its members provide to Bali's economy. The organization's focus is also in line with IFC-PENSA's Handicraft Export Promotion Program, which works to develop linkages between manufacturers and their markets.
Previously, IFC-PENSA’s Business Enabling Environment Program signed a working relationship agreement with the Indonesia Cocoa Association, ASKINDO, in Makassar to help the association with management, advocacy and provision of products and services for members.
ASEPHI is a national business association with membership limited to companies or organizations that have interest or involvement in the handicraft industry. The primary objective of ASEPHI Bali is to improve the positioning of Balinese handicrafts in the global market, develop a conducive business climate for the handicraft community, develop business relationships between handicraft community members, improve the quality of human resources of the handicraft community and develop relevant economic network through the handicraft community in Bali.
IFC-PENSA, is one of IFC’s technical assistance facilities supporting small and medium enterprises. IFC is the private sector arm of the World Bank Group. 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.
