Private sector development exploratory project

and Indonesian private firms. The project will be implemented by the Indonesian Chamber of Commerce and the Indonesian Government"s (GOI) Ministry of Finance (MOF), Investment Coordinating Board (BKPM), and National Development Planning Board. The project will establish, under MOF guidance, a program to annually send 35 Indonesian entrepreneurs for short-term business management training at U.S. universities. Candidates requiring assistance with English or business fundamentals will be tutored by the Indonesian-American Association. The GOI will set up a $1.3 million fund in the Bank of Indonesia from which participants or their firms may take out 5-year, 6% loans to cover 75% of training costs. A consultant will help to determine training objectives and selection criteria and to place participants. The project will provide the BKPM with U.S. short-term and selected long-term training for its staff and will retain three local consulting firms to help the BKPM develop up to 30 project profiles, 15 in agribusiness and 15 in light industry. The consultants will also seek out and screen proposals from Indonesian entrepreneurs seeking U.S. partners; inform U.S. businesses in Indonesia of local opportunities; and work with U.S. Government agencies to locate U.S. partners once suitable projects have been identified. The project will support several special studies and consultancies, to be executed under the MOF. Among the proposed studies are an assessment of the need for a special financial institution to provide venture equity capital in Indonesia; a survey of U.S. firms that have expressed interest in investing in Indonesia; and a study of small business opportunities in areas where future large-scale industrial investment is planned (e.g., the Aceh region). Amendment of 5/84 adds a component to develop light manufacturing and agribusiness in Central Java. To encourage local manufacture of items currently imported, the Ministry of Industry"s Metal Industry Development Center (MIDC) will develop prototype agroprocessing equipment and spare parts. To encourage export generation, new markets for products currently produced will be explored and training, TA, etc., provided to producers. Finally, a shrimp expert will demonstrate model technologies at one private hatchery and provide TA at three others and will help the Brackish Water Institute develop a new shrimp food. (PD-AAP-634) Amendment of 6/6/86 increases funding for special studies, TA, and training (especially involving policy formulation and implementation in areas critical to the private sector, such as capital markets and taxes), and for small/medium enterprise development in Central Java. (PD-AAU-256)