Indonesia: Improving Access to Finance in Aceh and North Sumatra

Sovereign Project | 45266-001 Status: Active


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Procurement Documents

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Project Name Improving Access to Finance in Aceh and North Sumatra
Project Number 45266-001
Country Indonesia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8224-INO: Improving Access to Finance in Aceh and North Sumatra
Japan Fund for Poverty Reduction US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Inclusive finance - Small and medium enterprise finance and leasing - Trade finance

Gender Equity and Mainstreaming
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome The TA has started effectively since February 2014. The TA will close as scheduled on 8 October 2015
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

To enhance the capacity of the provincial governments to manage the MRF Fund, the TA has prepared MRF transfer documentation requirements and recommended micro finance services manual; MRF transfer status report for Ministry of Finance; facilitated production of the parliamentary evaluation (Nasca) and exchange visit for North Sumutra. The remaining TA activities include production of parliamentary decree (Perda) in North Sumatra and development of monitoring systems on use MIF in Bank Aceh and Bank Sumut

To assist local banks to develop new microfinance products, the TA has developed integrated supply chain loan products, ensured MIF services are included in Bank Aceh and Bank Sumut annual business plans; and focused MSME lending on rural cluster commodities. The remaining TA activities include introduction of supply chain accounting and shared value analysis; tailoring existing microfinance products for integrated MSMEs lending; introduction of key products business development and mentoring (Sentra partnership).

To support the Government of Aceh to develop a sustainable local government credit guarantee company (LGCGC), the TA produced a step-by-step guidance manual for both conventional and Syariah banking; financial modelling tool for future LGCGC funding and cash flow forecasts. There are no remaining TA activities as the Aceh local government has delayed formation of the LGCGC until 2016 after the formation of their new bank Aceh Syariah.

To provide MSME capacity building and assistance on a pilot basis, the TA piloted cluster supply chain's connecting micro producers to export market; developed standard operating procedures (SOP) on mobile phones and created online business planning for MSMEs. The remaining TA activities include development online portfolio of integrated supply chain MSME plans and MIF loan processing through Bank Aceh, linkage rural banks (BPRs) and Bank Sumut.

The TA has involved local universities in participatory action research and online MSME planning. The remaining TA activities include continuing MSME mentoring at the University Business Incubator Centre and introducing a full curricula and syllabus for MSME business planning.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders of the TA are actively contributed to the project design. These include the stakeholders from the provincial government, the banking and microfinance sectors, and the champions in the cluster of producers both in Aceh and North Sumatera.
During Project Implementation Based on discussion with the government, the Ministry of Home Affairs (MOHA) will be the Executing Agency for the TA. The TA team will be invited to the national focal discussion group on financial inclusion organized by BI to share the outputs and lessons learned from the TA.

Business Opportunities

Consulting Services In consultation with MOHA and the provincial governments of Aceh and North Sumatra, ADB will recruit consultants as required under the TA (52 person-months of consulting services, consisting of two international consultants for 12 person-months and two national consultants for 40 person-months). The team of consultants, led by the international consultant, will be responsible for producing the TA outputs and deliverables in a timely and effective manner, and for organizing and carrying out all TA activities. The consultants will be selected and engaged on an individual basis by ADB in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). With a small number of consultants involved in the TA, it will be more efficient to engage consultants on an individual basis.
Procurement The proceeds of the TA will be disbursed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). All procurement under the TA will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Renadi Budiman
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Ministry of Home Affairs
Dir General of Regional Autonomy
Jl. Medan Merdeka Utara No. 7
Jakarta Selatan


Concept Clearance 02 Sep 2011
Fact Finding 05 Sep 2011 to 09 Sep 2011
Approval -
Last Review Mission -
Last PDS Update 31 Mar 2015

TA 8224-INO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Nov 2012 08 Apr 2013 08 Apr 2013 31 Oct 2014 08 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 800,000.00 0.00 0.00 0.00 0.00 800,000.00 08 Nov 2012 691,341.50
Title Document Type Document Date
Improving Access to Finance in Aceh and North Sumatra Technical Assistance Reports Nov 2012

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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