International Development Grant

Program for Eastern Indonesia SME Assistance (PENSA II)

Project Number: CA-3-A035355001

Status: Closed

Country/Region:

Indonesia 100.00%

Maximum Contribution: $3,500,000.00

Start Date: February 22, 2012

End Date: March 31, 2014

Duration: 2.1 years

Project Description

The project is multi-donor program that aims to create opportunities and to improve peoples' lives in Indonesia through support to private sector development and sustainable economic growth focussed on small and medium enterprises (SMEs). The program aims to increase lending and banking services improve regulations strengthen sustainable agriculture and forestry management and increase access to infrastructure. The program trains commercial bank employees on outreach to SMEs advises government on regulatory reforms trains agriculture and forestry firms on sustainable management practices and trains and advises the government on public-private infrastructure project preparation. The project is managed by the International Finance Corporation of the World Bank Group.

Expected Results

The intermediate outcomes for this project are: Increased lending and banking services for smallholders and MSME clients particularly for women; Improved regulatory environment for the private sector; Improved sustainable agriculture management by smallholders forestry management by forestry firms and government stakeholders and corporate governance by firms; Improved collaboration between government and private sector to enhance access for women and men to infrastructure services

Progress & Results Achieved

Results achieved as of the end of project (March 2014): 1) 1) Access to Finance: 176 548 loans to Micro Small and Medium Enterprise clients worth US$ 284.6 million (targets: 78 634 loans worth US$ 110.8 million). 155 156 of the loans were to active women borrowers (target: 51 250); (2) Investment Climate: 40 recommended laws/regulations/amendments/codes enacted (target: 25) 40 procedures/policies/practices/standards improved or eliminated (target: 28) US$ 2.7 million direct cost compliance savings for the private sector (target: $4.4 million); 3) Sustainable Business Advisory: US$ 7.2 million in farmers revenues (target: US$ 6.3 million) 178 286 hectares of sustainably managed land (target: 176 549 hectares) 10 156 farmers implementing improved skills (target: 8 000); 4) Access to Infrastructure: no new access to water services by women and men due to delays in bids for Public-Private Partnership contracts (target: 3 million women and men).

Key Information

Executing Agency:
IBRD Trust Funds - World Bank

Reporting Organization:
Global Affairs Canada

Program:
OGM Indo-Pacific

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Formal sector financial intermediaries 20%
Business support services and institutions 20%
Small and medium-sized enterprises (SME) development 40%
Agro-industries 10%
Forest industries 10%

Aid Type: Contributions to specific-purpose programmes and funds managed by implementing partners

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Policy Markers
Level 1 Gender equality
Level 1 Environmental sustainability (cross-cutting)
Major Funding (>$1M)
Budget Breakdown
2011-04-01 to 2012-03-31 $3,500,000 CAD
Geographic Information
500
Project Number: CA-3-A035355001