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This presentation is solely for the use of session sharing in ILO Conference No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Yayasan Dharma Bhakti Astra

Year Astra Year Astra Foundations

2013 56th Anniversary Partners include Fuji Xerox, Komatsu, Standard Chartered, etc. 185,580 employees in 170 companies (December 2012) Net Income USD 1,583 mil (2010), USD 2,027 mil (2011), USD 2,061 mil (2012) Market Capitalization USD 32 billion (2012) 2010 Yayasan Pendidikan Astra – Michael D Ruslim 2008 Yayasan Karya Bhakti United Tractors (UT Schoool) 2001

• Yayasan Astra Bina Ilmu
• Yayasan Amaliah Astra

1995 Yayasan Astra Honda Motor 1990 Listed on Jakarta Stock Exchange (JSX) 1978 Established PT Daihatsu Indonesia (AI held 75% of shares) 1990

• Koperasi Astra
• Astra Mitra Ventura

1973 Established PT United Tractors – Heavy Equipment Business Unit 1987 Dana Pensiun Astra 1980 Yayasan Dharma Bhakti Astra 1970 Sole distributor of Honda motorcycle 1974 Yayasan Toyota dan Astra 1969 Sole distributor of Toyota 1965 Established (February 20, 1957) – commodity trading

Headcount as per December 2012

185,580 employees in 170 companies

In 6 main business value chains

Focus on GREEN Corporation Initiatives and support Local Community Green Program Focus on Program for Child and Mother, in collaboration with Local Government and Community Focus on Subcontractors of Astra and Local Community Surrounding each Astra Group Premises

Focus on Primary and Secondary in the Poorest Region in Indonesia as Corporate Wide Program and in Surrounding Area of Astra Group Premises

Education

Environment

Health SME/IGA

People

Portfolio

Public Contribution

• 3. To respect individuals and promote

teamwork

• 2. To provide the best service to our

customers

• 1. To be an asset to the nation

Catur Dharma Astra

• 4. To continually strive for exellence

C A R E

• mpassionate

daptive esponsible xcellent

YDBA Operating Values

Our believe and commitment to the MSMEs

• Values and Astra

Management System have been transformed

• A Bar of Benchmark
• Development agent to

promote entrepreneurship in Indonesia

• Solution Provider
• Consultant Role
• Reliable Hub
• Supporting IVC’s

Portfolio business

• Competent Resources
• Available Infrastructure

“Built Performance base on Competency” “To be a Trusted Partner” “To become a Role Model of Development Agent for the growth

• f MSMEs”

Key Success Key Success Key Success

Resourceful Partner

9

PROGRAM

1.TRAINING & MENTORING 1.Human Resource Dev 2.Production 3.Marketing 4.Finance 5.EHS & CSR 2.MARKETING & FINANCING ACCESS

• 1. Toyota Astra Motor
• 2. Toyota Motor

Manufacturing Indonesia

• 3. Astra Honda Motor
• 4. Astra Daihatsu Motor
• 5. Isuzu Astra Motor

Indonesia

• 6. Astra Otoparts
• 7. Astra Agro Lestari, etc
• 1. Ministry
• 2. State Owned Entreprises
• 3. Private Company
• 4. Finance Institution
• 5. Education Institution
• 6. International Organization

Sinergy Sinergy

• 1. MSMEs GALERY
• 2. BDA
• 3. MFI

MSMEs

NON- RELATED RELATED

Note: BDA = Business Development Agency MFI = Micro Financial Institution ASTRA GROUP

• 1. Access to Market (Order

from ASTRA Group)

• 2. Access to Financing (AMV

& Permata Bank)

• 3. Training & Development
• 4. Technical Assistance
• 5. Management Support
• 6. Coaching & Mentoring
• 1. Access to Market
• 2. Access to Financing
• 3. Provision of Training

• MSMEs trainings & mentoring
• Establishment of BDAs & MFIs
• Modules Training Improvement
• Financial value chain
• MSMEs development Blue Print

AFFCOs within the group

• Trainings,workshops and seminars for MSMEs
• Exhibitions
• Consultancy
• Establishment of BDA

Minister of Industry, MO Education, MO Corporation & SME

• Training and workshops for MSMEs
• Training and workshops for young mechanics

The state owned enterprises

• Establishment of BDAs, training and workshops
• Financing facilitation

Other Private Companies non ASTRA

• SCORE project facilitation and mentoring

ILO

• Training and benchmarking for MSMEs in Japan
• Benchmarking in Japan for YDBA instructors

HIDA

The Overseas Human Resources and Industry Development Assosiation

(AOTS-JODC)

• Benchmarking MSMEs Development

UNIDO

United Nation Industrial Development Organization Funding by Astra Funding by Astra and Govt Funding by SOE

Funding by Other Private Companies

Funding by Astra and ILO

Funding by Astra and HIDA Funding by UNIDO

accumulated

LPB Mitra Bersama Bukittinggi WEST SUMATERA LPB Mitra Bersama Palembang SOUTH SUMATERA LPB Mitra Bersama Sidoarjo EAST JAVA LPB Toppama CENTRAL KALIMANTAN LPB Pama Mitra Daya EAST KALIMANTAN LPB Adaro Pama SOUTH KALIMANTAN LPB Warbis Rasuna SOUTH JAKARTA LPB Mitra Bersama Yogyakarta CENTRAL JAVA LPB Banua Prima Persada SOUTH KALIMANTAN LPB Pama Taka Daya EAST KALIMANTAN LPB Mataram WEST NUSA TENGGARA LPB Tegal CENTRAL JAVA LKM Tabalong SOUTH KALIMANTAN LKM Tapin SOUTH KALIMANTAN LKM Tanjung Enim SOUTH SUMATRA LKM Bartim CENTRAL KALIMANTAN LKM Mamuju WEST SULAWESI LKM Mamuju Utara WEST SULAWESI LKM Barsel CENTRAL KALIMANTAN LKM Balangan SOUTH KALIMANTAN LKM Kutai Barat EAST KALIMANTAN LKM Kumai CENTRAL KALIMANTAN

Per Dec 12 BDAs:12 MFIs: 10

No. MSME Sectors

2011 2012

Unit Headcount Unit Headcount 1. Subcontractors linked to Astra business value chain 184 23,776 223 26,555 2. General manufacturing not linked to Astra business value chain 51 945 51 945 3. HONDA service station partner 60 180 60 180 4. AHASS (Astra Honda Authorized Service Station) 607 3,642 628 3,768 5. 2W general service station 135 512 180 641 6. 4W general service station 241 3,084 262 3,700 7. Member of BDAS (LPB) 1,503 9,664 1,660 10,019 8. Member of MFIs (LKM) 4,313 4,629 4.255 5,097 9. Handicraft makers 144 720 163 1,664 TOTAL of MSMEs (accumulated) 7,238 47,150 7,482 52,269

In USD Million

USD 144.05 Mil USD 146.43 Mil

Total transaction of MSMEs to Astra Group is USD 146.43 Million from 102 1st tier MSMEs, an increase of 1.6 % compared to 2011

0,00 20,00 40,00 60,00 80,00 100,00 120,00 140,00 160,00 2011 2012 99,07 98,24 12,20 17.68 (per sept) 27,92 24,41 1,76 1,14 3,10 4,96

AHM TMMIN ADM IAMI AMTI

15

Financial Institution 2010 2011 2012 MSMEs Amount MSMEs Amount MSMEs Amount

(Unit) (USD Million) (Unit) (USD Million) (Unit) (USD Million)

PT Astra Mitra Ventura 5 0.08 47 1.29 57 4.76 Permata Bank 10 3.06 44 15.97 PT Surveyor Indonesia 60 0.19 44 0.1 44 0.08 Niaga Bank 12 3.12 30 20.2 2 0.44 Total 77 3.39 131 6.47 147 21.25

1st Grade

Standard Quality Improvement for New Starter

Self Reliant MSMEs

2nd Grade

Improvement for Competency & Capability

3rd Grade

Operational Excellence

• Basic Training
• Owner’s Commitment
• TPS for Executive
• Self Assessment
• Mentoring
• MSMEs Forum
• Sosialization of

certification, assessment & regulation

• Intermediate Training
• Mentoring
• MSMEs Forum
• Introduction of ISO
• Advance Training
• Mentoring
• MSMEs Forum
• Assessment of Self Reliant

MSMEs

• AGC & AFC
• Quality Management

System (Pre ISO)

• Implementation of Standard

Certification

YDBA Blueprint for the Development of Manufacturing MSMEs (an example) Awarding Programs Programs Programs

17

10% 5% OTHERS 10% 60% 15%

8

Nusa Toyotetsu Cendana

Customer Share

PT WAJA KAMAJAYA SENTOSA ‘S PROFILE

• 1. Employess

: 150 persons

• 2. Land

: 1,000 m2

• 3. Building

: 8,000 m2

• 4. Established

: 1997

• 5. Member since 2002

YDBA’S IN-CLASS TRAINING ATTENDED

I. Basic: Basic Mentality, 5S

• II. Intermediate:
• 1. Total Productive Maintenance
• 2. Cost Reduction
• 3. Production Management
• 4. Supervisory Management
• 5. Quality Control Circcle
• III. Advance:
• 1. Marketing
• 2. Human Resource Officer Development

Program

18

NO DESCRIPTION BEFORE AFTER % REMARK

1 DISTANCE BETWEEN PROCESS 220 M 87 M 61 % PRODUCTIVITY 2 PROCESSING TIME 296 second 111 Second 62,5 % PRODUCTIVITY 3 MAN POWER 7 PERSON 4 PERSON 43 % PRODUCTIVITY 4 WIP 2000 Pcs 200 Pcs 90 % PRODUCTIVITY 5 YAMASUMI CHART ( LOADING CHART ) UNBALANCE LOADING MOSTLY BALANCE WORKER LOADING NEARLY SAME 6 PACKING CARTON BOX POLYBOX SET IN ORDER 7 ASSY TABLE NARROW WIDE MODIFIED 8 REJECT PART NO DATA START TO COLLECT DATA CONTROLLABLE 9 WORK SPACE NARROW WIDE MORE SAFE & COMFORT

MAN

DOUBTFUL INSPECTOR INSPECTOR NOT UNDERSTAND PARTS STANDARD LACK OF SKILL UP TRAINING

ENVIRONMENT

WORKER NOT FOCUS WORKING AREA UNHEALTHY & NARROW

METHOD MACHINES

NO Work Instructions

NO CHECK SHEET NOT MADE YET SLOW PRODUCTION

DISTANCE BETWEEN PROCESS IS TOO FAR

PART LABELLING NOT SET IN ORDER NO PLACE FOR LABEL LABEL CONTAINER NOT MADE YET VISUAL CHECK ALL PARTS INSPECTOR NOT ACCURATE

Distance Sub process assy DS23 far enough

CHECK SPEC SPEND TIME FOR MATERIAL HANDLING CHECK APPEARANCE ASSY 1 ASSY 2 WIRE CUTT

BLANK + PIERC + BEND

FORGING

INSPECTION + PACKING

RIVET

GUDANG MATERIAL RAW LINE A MACHINE WIP

Cutting kawat

BEND PIERC BLAN K FORGING WAREHOUSE RAW MATERIAL LINE A MACHINE

ASSY 1 RIV ET ASSY 2 INS PE CTI ON

Before After

RESULT

43 50 54 61

2009 2010 2011 2012

Accumulated

• Important source of local supply and service provision to

larger corporations

• Extensive local knowledge of resources, supply patterns

and purchasing trends

• By working closely with SMEs, large corporations can

develop a new customer base that may not be accessible to the traditional distribution networks of these corporations.

• Important source of innovation – SMEs tend to occupy

specialized market “niches” and follow competitive strategies that set them apart from other companies

World Business Council for Sustainable Development, 2007

Lack of capacity- building programs and inadequate provision

• f vocational training

Access to formal finance Quality industrial infrastructure Marketing of products Lack of adequate working capital Technology upgradation and improvement in quality of products Quality of products

• Prof. Deepak Tandon, 2010

Issues Identified Percentage

• Lack of finance

55%

• Shortage of skilled labour

39%

• Getting business site

38%

• Bribes

21%

• Orders/Marketing of Product

28%

• Lack of Knowledge

12%

• Government interference

12%

• Raw Material

10%

• License for work

8%

• New Technology

8%

SME Policy Note – World Bank 2002

Index derived from the mean scores (on a scale from 1 to 4) of four questions:

• valuation of creativity/innovation in own country
• difficulty to start own business in country
• valuation of people who start own business
• ease of putting ideas into practice

This presentation is solely for the use of session sharing in ILO Conference No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Yayasan Dharma Bhakti Astra