New Zealand Embassy Jakarta, Indonesia
New Zealand increases support for Indonesian businesses and agriculture
NZAID has recently boosted its support for Indonesian businesses and agriculture by increasing its funding of the International Finance Corporation’s (IFC) PENSA II Trust Fund, by more than half a million US dollars. IFC runs two programmes in Indonesia aimed at helping farmers and growers, and small and medium sized businesses.
NZAID’s aim is to support sustainable growth and development in Indonesia, and financially supporting IFC through their PENSA II Trust Fund achieves this, said NZAID Manager, Kirk Yates.
IFC‘s Agri-business sector programme seeks to improve market access and long-term sustainability for rural small holders by shortening the market chain from farmer to consumer. Growers and farmers are introduced to selected firms – known as “lead” firms that are seeking secure suppliers. IFC works with these firms to help build the capacity of small holders and to adopt agreed quality standards. It also assists in their adoption of world class environmental and social standards.
The small holders are no longer competing individually with each other at markets, are increasing their bargaining power and improving their returns, said Yates.
The scheme also helps farmers gain access to technology and to finance.
The second programme NZAID funds through IFC is targeted at improving conditions for small and medium sized businesses to operate under in Indonesia.
The aim is to reduce red tape for businesses to make it easier for entrepreneurs to enter the market and operate their businesses, to attract and retain domestic and foreign investment and help policy reform and investment in certain business sectors such as agribusiness.
This takes NZAID’s overall support to IFC for the 2008-2013 period from USD2 million to more than USD2, 580,000, said Yates.