SMALL ENTERPRISE DEV

closed

The First Small Enterprise Development Project will improve incomes of small farmers and businessmen, and provide additional employment opportunities, by assisting Bank Indonesia in strengthening its existing Small-Investment-Credit/Small-Permanent-Working-Capital-Credit (KIK/KMKP) program and laying the groundwork for a gradual improvement of Government technical services to small-scale enterprises. The project will finance KIK lending, for about two and one half years, in the provinces of East and Central Java and West Sumatera. Approximately 10,000 subloans will be made by handling banks for productive activities in virtually all sectors of the economy. Technical assistance will involve the strengthening of KIK/KMKP program supervision, the establishment of three Provincial Project Management Units, training of Bank Indonesia and handling banks' staff, a study of the credit insurance system, an evaluation study of the project's impact, and a study of handling banks' total administrative and financial costs under the program.