Banda Aceh, Indonesia, December 3, 2009—IFC,
a member of the World Bank Group, is helping the Aceh provincial government
accelerate reforms by facilitating public and private sector dialogue
to identify actions needed to improve investment and create jobs in Aceh.
The effort is being supported by the governments of Australia and Indonesia.
IFC is working through its program,
Investment Climate Advisory Services of the World Bank Group, to co-host
the second Aceh Business Forum together with the Aceh provincial government
and the Aceh Chambers of Commerce and Industry. The forum serves as a platform
for private sector working groups to present the government with their
recommendations for addressing issues affecting the business climate in
Aceh. This forum also provides opportunities for the government of Aceh
to report on the reforms implemented in the past year and planned in the
“Private sector development is an important
driver of Indonesia’s economic growth,” said Geoffrey Walton, Investment
Climate Advisory Services Business Line Leader for East Asia and Pacific.
“Strong collaboration between the government and the private sector is
essential in establishing a favorable investment climate, thus helping
More than 150 Aceh entrepreneurs from
small, medium, and large enterprises have been participating in working
group meetings since 2007. In 2009, 12 working groups meetings identified
issues such as the absence of regulations and clear policies, inadequate
infrastructure, limited access to markets and financing, inadequate human
resources, and high business operational costs. The first Aceh Business
Forum was held in November 2008.
Based on the recommendation from the
trade, industry, and agribusiness working groups to help small and medium
enterprises obtain access to credit, the Bank Pembangunan Daerah has cooperated
with Sparkassen Bank Foundation International Coorporation (SBFIC) to provide
SME loans of 5 million to 15 million rupiah. To support export and import,
a working group recommended that the government immediately improve port
facilities. Two major ports are currently being rebuilt; one in Langsa,
East Aceh and the other in Malahayati, which is the biggest port near Banda
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. It is currently seeking a capital increase
to strengthen its ability to create opportunity for the poor in developing
countries – including by supporting Aceh government and private sector
cooperation through Aceh Business Forum.
About the Investment Climate Advisory
Services of the World Bank Group
The Investment Climate Advisory Services
of the World Bank Group helps governments implement reforms to improve
their business environment, and encourage and retain investment, thus fostering
competitive markets, growth and job creation. Funding is provided by the
World Bank Group (IFC, MIGA, and the World Bank) and over fifteen donor
partners working through the multidonor FIAS platform.