Livelihood Recovery for Yogyakarta and Central Java

Amount of funds: US$ 10.76 million
Implementation period: February 2009 to May 2010
Implementing Agency: German Agency for Technical Assistance (GTZ)
Partner agency: World Bank
Area of work: Central Java and Yogyakarta

The project aims assist micro, small and medium enterprises (MSMEs) affected by the earthquake to revitalize their businesses and to re-integrate affected low income communities back into economic life. The project particularly focuses on remote communities which have received little assistance so far.

Current Status:

The project has conducted the following activities:

• GTZ shared IOM’s existing project locations, allowing project data to be consolidated in the IOM’s project database. The two implementing agencies are coordinating closely, in consultation with provincial and district
  governments on beneficiary selection and assessments.
• Finalized operational setup to provide financial assistance to MSEs via PNM and Financial Intermediaries (BPRs and Cooperatives) in the region.
• GTZ is in the process of setting up the project management team to work with local partners.

Challenges and Outlook:

To monitor progress closely on the ground and to engage with local governments, the World Bank has recruited a Project Officer based in Yogyakarta to coordinate closely with the implementing agencies and the government and actively engage in monitoring and evaluation of the projects.

The projects are well poised to reach beneficiaries and disburse to an initial tranche of beneficiaries in September 2009. However, with delays in setting up the operations mechanism, reaching 3,000 MSEs and 10,000 MSMEs within the life of the two projects will be challenging. The project may have to be extended to fully disburse. The JRF extension to December 2011 is now planned and underway which will allow time for these projects to achieve their intended targets.