JICA produces assistance to train local entrepreneurs

Zakki P. Hakim, The Jakarta Post/Jakarta

The Japanese government, through the Japan International Cooperation Agency (JICA), has provided Indonesia with a grant of Rp 2.06 billion (US$229,000 million) to finance training programs for local entrepreneurs who run small and medium enterprises (SMEs).

The fund, which is allocated from JICA's resources for "Japan- ASEAN Comprehensive Human Resources Development (JACHRD)", are being used to finance a series of training programs from November this year to January next year in several big cities.

Some 300 participants will take part in the "in-country" training programs, Minister of Industry Andung A. Nitimihardja said here on Tuesday, while officially opening the training series.

"We are aware that the sector (SMEs) is having problems with working capital, management, marketing and training. The assistance from JICA should help to ease at least one problem," said Andung.

JICA first funded training for SMEs in 1998, expecting that the programs would end in 2002. However, it later decided to continue with the training and has now financed a total of 7 training series, including the current one.

"At least 2,100 SME players have participated in the training programs since 1998, but the figure is only a small fraction of the total manpower involved in SMEs. I will talk to JICA to give us more funds for this program," he said.

According to Andung, last year there were 3 million SMEs in the country, compared to 7,000 big companies. They absorbed no less than 12 million workers and contributed 10 percent of the country's non-oil and gas exports.

The government aims to increase non-oil and gas exports this year to $50.73 billion, or up 7 percent from last year's $47.41 billion.

Also during the ceremony, head of the ministry's agency for research and the development of industry and trade Agus Tjahajana, said that JICA had provided total funds of Rp 8.4 billion for trainings programs since 1998.

The current training series, which is worth Rp 2.75 billion, will comprise 12 sessions, compared to nine in previous series.

"As the Japanese grant is only Rp 2.06 billion, the rest of the money comes from the state budget," Agus said.