Bank Indonesia (BI) has issued regulation No. 7/39/PBI/2005 year 2005, settling out technical assistance for micro, small and medium enterprises development. The basic premise is to ensure that the strategic and critical role of the enterprises in the national economy continues, therefore BI made technical assistance available.

Technical assistance provided is in the form of training and providing information to banks, finance institution and service provider institution. Material of training includes development strategies, development of potential survey by way of Rapid Rural Appraisal (RRA) method, credit analysis, handling bad credit, and credit issues. Information included data on credit statistic, commodity potential to be develop, commodity potential to be exported, and commodity financing funded by bank and other information in the frame work of developing micro, small and medium enterprises.

The cost of such training and information services will be shared between the relevant institution and BI with a provision that BI will pay a minimum of 50% of the training while Service Provider Institution will pay minimum 15% of the training.

This regulation has been in force since 18 October 2005 and is expected to ensure the strategic presence of micro, small, and medium enterprises in the Indonesian economy. (ykd/mma)