JRF // Java Reconstruction Fund (Livelihoods)

Access to Finance and Capacity Building of Earthquake Affected Micro and Small Enterprises

Amount of funds: US$ 4.48 million
Implementation period: October 2008 - May 2010
Implementing Agency: International Organization for Migration
Partner agency: World Bank
Area of work: earthquake affected Central Java and Yogyakarta

The project aims to support the recovery of micro and small enterprises (MSEs) in Yogyakarta and central Java and enable them to reach their pre-earthquake capacity trhrough enhanced access to finance and targeted technical assistance.

IOM's major efforts have focused on engaging government counterparts through consultation meetings and a stakeholder workshop to cordinate interventions and to agree on project locations. With agreement reached between IOM and Permodalan Nasional Madai (PNM), the access to finance component of this project is expected to quickly take off pending the MOU signing with first batch of beneficiaries receiving financing in September 2009.

Highlights of Achievements:

IOM established a database listing of more than 800 villages and 588 MSEs affected by the earthquake.
Working closely with the provincial and district governments, 18 villages were selected from Central Java and DIY. From villages in DIY, 1.093 micro and small business operators (MSEs), were selected as beneficiaries, of which 56.7% are owned by women.
The MOU between IOM and PNM was agreed upon and cleared by the legal departments of both organizations. It is expected to be signed by June 2009. Subsequently, credit to beneficiaries is expected to be available in September 2009.
198 MSEs have benefited from the project’s “asset replacement” component through the provision of infrastructure and tools, such as essential production equipment for silversmiths.
390 MSEs across various income-generation sectors have been provided with technical skill training in design, production and finishing in cooperation with the Indonesian Chamber of Commerce and Industry (KADIN).
These 390 MSEs have also participated in exchange visits (or cross-visits) organized in cooperation with KADIN.
80 MSEs participated in Indonesia ACT (Art, Craft, and Tourism) at the Jogja Expo Center (JEC) and the Festival Kesenian Yogyakarta (FKY) to enhance market access recovery.
IOM has established excellent cooperation with Bina Swadaya Foundation for it to provide timely and strategic training. 892 MSEs have completed a seven-day intensive business development training program through thiscooperation.