PEAC Jakarta unit launched to boost SME financing access<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
In an effort to help develop and empower small-to medium- sized
\nenterprises (SMEs), a Jakarta unit of an agency designed to
\npromote SMEs's access to financing was launched on Thursday.<\/p>\n
The launch of the agency, named Promoting Enterprise Access to
\nCredit (PEAC), followed the setting up of a similar agency in
\nSurabaya in December.<\/p>\n
PEAC is jointly sponsored by Swiss Foundation for Technical
\nCooperation (Swisscontact) and the Eastern Indonesia Small and
\nMedium-sized Enterprise Development (PENSA) -- an affiliation
\nwith the World Bank's private arm, the International Finance
\nCorporation (IFC).<\/p>\n
\"The existence of PEAC is to provide a (financing) bridge to
\nSMEs,\" said Swisscontact's resident representative, Peter
\nBissegger.<\/p>\n
The Jakarta unit is expected to help SMEs at district level in
\nthe greater Jakarta area gain and extend access to financing or
\ncredits. The services provided by the agency focus on consultancy
\n-- aimed at enhancing the knowledge of banking products among
\nSMEs starting from the very basic skills such as filling in
\nlending applications as well as helping prepare them to meet
\ncredit requirements.<\/p>\n
On Thursday, officials from the Swisscontact and PENSA met
\nwith 40 prospective investors, mostly banks, which will soon be
\nshortlisted to just one investor who would then become the sole
\nfinancing provider for PEAC Jakarta.<\/p>\n
The prospective investors, both individuals and institutions,
\nmust complete several stages of a strict selection process before
\nbeing named the winner.<\/p>\n
Bissegger said the minimum requirements for prospective
\ninvestors were experience with SMEs, a clear business plan, sound
\nfinancial statements, and the ability to invest Rp 150 million
\n(US$16,375) to jump-start the program.<\/p>\n
According to Hal Bosher, the development officer for IFC,
\nPENSA and the central bank would take part in the selection of
\nthe investor.<\/p>\n
Bank Indonesia data shows that as of the third quarter of last
\nyear, bank loans to SMEs reached Rp 50.8 trillion, surpassing the
\ncentral bank's previous estimation of Rp 38.5 trillion.<\/p>\n
SMEs form one of the country's strategic sectors due to their
\nhuge impact on the economy. The SME sector, which is more
\nresilient than other sectors, employs about 37 million people, or
\n37 percent of the country's workforce.<\/p>\n
The sector was among the few in the country that was not
\nsignificantly affected by the financial crisis. (004)<\/p>",
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