INDUSTRIAL RESTRUCTU

closed

The Government of Indonesia has been implementing a series of policy reforms aimed at promoting private investment, stabilizing the economy, liberalizing the trade regime, deregulating industry, and improving the financial sector. Although this process is incomplete, the results thus far have been encouraging. However, a need still exists at the subsector level to provide financial and technical assistance to help individual enterprises to restructure and adjust to the increasingly deregulated, more competitive environment. The Industrial Restructuring Project will address this need through: (i) an investment credit component to provide financial assistance through participating financial institutions (PFI) for restructuring projects, including environmental actions in eligible enterprises; (ii) a technical assistance component to strengthen institutional capabilities and technical services, and improve the abilities of the PFIs to evaluate the technical, environmental, financial, and economic aspects of the proposals; and (iii) a studies component for preparation of a second restructuring project.