Astra foundation to increase SME assistance

JAKARTA: Astra International's Dharma Bhakti Astra Foundation (YDBA) will provide Rp 20 billion (US$2.3 million) in technical assistance to small and medium enterprises next year.

The foundation's executive board chairman, Krisni Murti, said on Monday that the amount was higher than this year's figure of "between Rp 10 billion and Rp 15 billion".

The assistance will be distributed to SMEs in the handicraft and automotive and motorcycle sectors, but with a 60:40 ratio in favor of SMEs producing handicrafts as opposed to those producing or supplying car and motorcycle components.

The foundation has helped SMEs for years, with the number of SME partners now reaching 911.

Out of the total 911 SME partners, 621 businesses are related to the Astra Group's business, including 93 SMEs that produce or sell components for Astra or distribute Astra's products. Besides the automotive business, Astra is also involved in plantations, information technology and infrastructure.

Krisni explained that the foundation's handicraft SME partners sold most of their products for export.

She said the foundation was committed to increasing the export performance of SMEs producing handicrafts, as well as boosting the output of SMEs that produce motorcycle and automobile components.

YDBA will obtain the funds from a few sources, including the World Bank's International Finance Corporation.

Astra is the sole distributor of Toyota vehicles as well as Honda Motorcycles through its subsidiary Honda Astra Motor.--JP