Astra foundation to increase SME assistance

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