In Indonesia, a tiny number of large firms tend to dominate the private sector at one extreme, with an abundance of informal micro- and small- businesses at the other. The private sector has few businesses in the middle—the formal, stable enterprises averaging 20-100 employees. Many of PENSA's services are geared toward this under-represented small-medium sub-sector. This group has the stability and the flexibility to adjust to the nation’s volatile economic, political, and business climate. However, they are not well-served by existing markets and institutions.

Therefore, the Program for Eastern Indonesia Small and Medium Enterprise Assistance – PENSA – was established in September 2003 with the task of improving lives and livelihoods by expanding the range of opportunities and capabilities for small and medium businesses.

PENSA delivers its products and services in the form of technical assistance and capacity building to small and medium enterprises. We also draw on the global experience of the International Finance Corporation and the World Bank and leverage the capabilities of donors, non-governmental organizations, the business community and partners.

PENSA is managed by IFC’s East Asia & the Pacific Department, and jointly funded by IFC and the governments of Australia, Canada, Japan, the Netherlands, and Switzerland, and the Asian Development Bank.