The Asian financial crisis of 1997-1998 pushed a large number of people below the poverty line. However, during the period of economic recovery, small and medium-sized enterprises (SMEs), particularly export-oriented firms, proved resilient in weathering the crisis. SMEs benefited from the rupiah's depreciation and provided substantial job opportunities, which contributed to reducing poverty. In view of these, the Government of Indonesia recognized the importance of SME development in spurring economic growth. As such, the Poverty Partnership Agreement between the Government of Indonesia and ADB noted SME development as a key area for future ADB support in Indonesia.
This report validates the completion report's assessment of the project which aims to support economic growth, reduce poverty through job creation and promotion of labor-intensive exports in Indonesia. IED overall assessment: Unsuccessful