BANDUNG (Joint Press Release) – The Governor of West Java, Ridwan Kamil is welcoming the representatives of the International Labour Organization (ILO) and the Swiss State Secretariat for Economic Affairs (SECO) today (6/6) at Gedung Sate, Bandung, West Java. Governor Ridwan Kamil warmly welcomes Michiko Miyamoto, ILO Country Director for Indonesia and Timor-Leste, Jonas Grunder, Program Manager Private Sector Development Unit SECO Head Quarter, Bern-Switzerland, Philipp Orga, Head of Economic Cooperation and Development, Embassy of Switzerland in Indonesia and Djauhari Sitorus, Project Manager of the ILO’s Promise II Impact Project.

The main goal of the meeting is to introduce the activities conducted by the ILO to further strengthen collaborations on financial inclusion and the development of micro, small and medium enterprises (SMEs), as the backbone of Indonesia’s economy, in Province of West Java. It is part of the priority of the Indonesian government to promote the digital economy as well as be aligned with the government’s post-pandemic economic recovery policies and programmes on fostering digital transformation and increasing financial inclusion, including the financing of SMEs.

The ILO through its “Promoting Small and Medium Enterprises through Entrepreneurs’ Access to Financial Services” programme (Promise II Impact), funded by SECO, supports SMEs to make the best use of the Digital Financial Services and to enhance their value chain ecosystem with digital technology adaptation specifically developed for SMEs in productive sectors. In addition, the programme builds the capacity of and provides digital technology support for regional development banks (BPD) and rural bank (BPR) as the main target, with the additional target to SME entrepreneurs and business development service providers.

West Java Province has been selected as one of the targeted provinces with a series of targeted activities and programmes as follows:

• Enhancing and digitalizing SMEs value chain ecosystem for Dairy Cattle Value Chain (KPBS) in Pangalengan.
• Supporting digital transformation of selected BPRs in West Java including upgrading core banking system: BPR Karta Raharja, BPR Bandung Kidul, BPR Bandung (City) and BPR Subang.
• Building the capacity of SME/farmers through Training for Trainers, Training and Coaching for SME/farmers using ILO’s Financial Education and GET Ahead modules.
• Building the capacity of BPD and BPR through training for middle and senior managers staff of BPD/BPR using ILO’s Making Microfinance Work (MMW) module.
• Supporting policymakers on SME development and financial inclusion.

Michiko Miyamoto, ILO Country Director for Indonesia and Timor-Leste, appreciated the support given by the West Java Province shown by the warm engagement with the Governor Ridwan Kamil. “SMEs play an important role in creating decent and productive employment in the country as they account for two-thirds of all jobs and create most new jobs. The ILO greatly appreciates the opportunity to sit down with the Governor Ridwan, discussing the ILO’s priorities to assist local SMEs in West Java to improve their competitiveness and productivity as well as accelerating their business recovery through digitalization,” she said.

Meanwhile Djauhari Sitorus, Programme Manager of Promise II Impact, explained the high potential of SMEs in the Province of West Java known as the largest SMEs producing province in the country. “In addition to East Nusa Tenggara, the ILO’s Promise II Impact has selected West Java as our targeted provinces. The high contribution that could be given by local SMEs in West Java is a vehicle for driving the economy that can reduce poverty and reduce unemployment through the creation of productive jobs,” Djauhari added.

The Promise II Impact, which will be held until 2025, is the continuation of the first phase of Promise Impact aimed to promote the development of SMEs in Indonesia and to provide them with greater access to financial services. Also funded by SECO, the first phase was conducted for four years from the year of 2015 to 2019 in collaboration with the Financial Services Authority (OJK), BPD, and BPR.

“The Swiss Government is committed to supporting the development of SMEs in Indonesia – the backbone of the country’s economy – through unlocking access to finance and boosting their digital transformation. With the strong support from West Java Province, Promise II Impact will help SMEs grow and create jobs, and ultimately contribute to Indonesia’s financial inclusion agenda” said Philipp Orga, Head of Economic Cooperation and Development, Embassy of Switzerland in Indonesia.

The courtesy meeting is also followed by site visits to monitor the progress of the implemented activities and to review the ways forward with the implementing partners of the ILO’s Promise II Impact in West Java.

For further information, contact:

Yanis Saputra
ILO’s National Project Officer of Promise II Impact
Email: yanis@ilo.org

Gita Lingga
ILO's Communications Officer
Email: gita@ilo.org