JICA produces assistance to train local entrepreneurs

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.