IFC-PENSA Launches Municipal Simplification Program

Tabanan, Bali, September 21, 2005 – The International Finance Corporation’s Program for Eastern Indonesia SME Assistance (IFC-PENSA) today formally announced a partnership with the government of Kabupaten Tabanan, Bali, to help improve the regulatory and operating climate for business.

Tabanan is the first local government to join IFC-PENSA’s Municipal Simplification program. The goal of the program is to help partner governments' reform business registration and licensing that impede business development to become cheaper, faster more transparent and accountable.

“By improving our investment climate, we look forward to attracting more investors to our area and encouraging informal businesses to register and become formal small and medium sized enterprises which will lead to more job opportunities and economic development,” said Bapak I Nyoman Adi Wiryatomo, Bupati, Tabanan, at the launch.

IFC-PENSA’s Municipal Simplification Program works with five kabupatens and kotas in Eastern Indonesia over 10-12 months to improve local investment climate. IFC-PENSA will also launch this program in cooperation with the government of Kota Denpasar next week. In providing technical assistance to the local governments, IFC-PENSA will work with Yayasan Innovasi Pemerintahan Daerah (YIPD).

“Indonesia still lags behind other countries in terms of time and cost to start a business. We are excited to be working closely with the local government of Tabanan and hope that together we will build a strong case that investment climate of Indonesia can be improved, especially at the local level,” said Carl Dagenhart, Program Manager, IFC-PENSA, Bali. “Also, in the medium-term, when small and medium-sized businesses are formalized, they will gain access to finance and other business services which will help them to expand further.”

The program is supported by Indonesia Regencies Cooperation Agency (Badan Kerjasama Kabupaten Seluruh Indonesia or BKKSI) and the Association of Indonesia Municipalities (Asosiasi Pemerintah Kota Seluruh Indonesia or APEKSI).

IFC-PENSA is IFC’s technical assistance facility supporting small and medium enterprise development in Eastern Indonesia. IFC is the private sector arm of the World Bank Group. The IFC-PENSA facility has a five-year mandate and has been co-funded by IFC, the Australian, Canadian, Japanese, Swiss and Netherlands government, and the Asian Development Bank with funding commitments of almost $25 million.

For further information, contact:

Agung Sugihandono / Nishaya Mangklapruk
IFC-PENSA
Gedung BEJ, Tower II, Lt. 13
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190
Tel: 021 5299 3001, fax: 021 5299 3141