Astra's foundation to increase SME assistance

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

Krisni explained the foundation's handicraft SME partners sell
most of their products for exports.

She said the foundation is committed to increasing the export
performances of SMEs producing handicraft, as well as boosting
the output of SMEs which produce motorcycle and automobile
components.

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

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