EU to provide $7.5m grant to innovative businesses

Eva C. Komandjaja The Jakarta Post Jakarta

A visiting European Commission (EC) delegation is encouraging business associations in Indonesia to apply for grants under a program called the Small Project Facility (SPF).

According to SPF program manager Juan Casla, the program was initially launched in April last year and was scheduled to run until 2005. The European Commission has provided total funds of 6 million euros (US$7.5 million) for the three-year program.

"Business associations can submit their proposals for the March 2004 (proposal) call. The projects proposed can range from research to training, or comparative studies," said Casla.

Casla added that the EC is determined to help boost Indonesia's economic growth by increasing trade and investment, thereby increasing Indonesia's exports to European Union countries.

The program will support small and innovative projects in various sectors that can increase mutual and strategic interests in Indonesia and the European Union (EU).

Activities financed by the SPF include conferences, seminars, workshops, training and educational activities. Studies, media products and business-related research activities are also supported by the program.

Casla cited a training program for exporting handicrafts to EU countries. The program is expected to increase Indonesian businesspeople's understanding of the requirements of exporting successfully to EU countries.

The training also aims to increasing contact between Indonesian exporters and European importers and finally increase the volume of business in handicrafts and interior decoration products.

In 2003, there were two calls for proposals. A total amount of 625,000 euros was awarded to five projects from the first set of proposals received.

Under its second call, the Evaluation Committee has recommended seven projects, with a total value of around 1 million euros.

Similar to the two previous calls in 2003, the EC contributes 75 percent of the project budget, and the applicants are to come up with the other 25 percent on their own.

Apart from the EU-Indonesia Small Project Facility for Economic Cooperation, the EC has other funding opportunities available for Indonesian businesspeople, especially the economic cooperation programs that cover the whole of the Asia region and require partnerships between Asian and European communities.