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