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| IBBM's Johnson Pundari |
Papua New Guinea‘s landowner companies have been
around for a while, but the current resource boom, particularly the US15
billion (K37.5) PNG LNG project has significantly increased their opportunities. Under the current public
private partnership agenda driven by the incumbent government, many private sector
organizations are partnering with the public sector organizations to ensure
efficient delivery of basic goods and service to the mass and to boost the
growth of private and the economy.
The IBBM Enterprise Centre
established by the PNG LNG Project in partnership with the Institute of Banking
and Business Management (IBBM) in 2009 is a driving force behind private sector
growth in PNG.
TIM talked to IBBM’s manager
Johnson Pundari about taking private sector growth, particularly, the Small
Medium Enterprises (SMEs).
What are the
core objectives of IBBM?
Pundari: The IBBM Enterprise Centre was
established by the PNG LNG Project in partnership with the Institute of Banking
and Business Management (IBBM) in 2009. Its main function was to help build the
capacities of SMEs from the Project Impact Areas so that they can be able to
participate in spin-off business opportunities from the LNG Project. IBBM works with the top 180 corporate
organizations in PNG. Besides the Central Bank, the commercial banks have been the major clients and have
their presence in our governing board. PNG LNG Project has a five year contract
with IBBM Enterprise Centre. Other clients are Interoil, Nasfund, OTML, Coffey,
PNG EPSP and other 150 SMEs.
How do you
conduct your capacity building programs?
One of the major functions
of the centre is conducting of Business Assessment of SMEs. Eight global best
practise criteria are used to assess performance and capabilities of companies
and a star rating is awarded accordingly. This process identifies the strengths
and weaknesses (GAP Analysis) of the assessed companies and business
improvement is done to address the weaknesses. This is followed by
recommendations of necessary capacity building programs to help close the GAPs.
The Centre has assessed over 300 companies to date. It has then helped these
companies in addressing the identified GAPs.
The assessment criteria are:
Governance
and Organization
Business Management
Finance
Management
Human
Resource
Inventory Control
Quality
Safety Health and Environment
Reputation and Image
Most SMEs do not grow and mature into sustainable businesses due
to lack of simple businesses process and procedures. Businesses are done on an
ad hoc basis without adhering to proper businesses practices thus
sustainability is an issue. Growth and development of SMEs in PNG will still be
vague without proper capacity building programs.
Do you see PNG
SMEs having the ability to sustain their businesses?
Pundari: Yes. They have the ability to
prosper given enough support in terms of strengthening management and
operations systems and processes. Most SMEs need initial guidance through
capacity building programs so that they can be guided through sound business
conducts and ethics. They need to focus on building strong practices around the
eight key areas mentioned above.
PNG needs
desperate investment infrastructures. What kind of roles should private sector
play in this aspect? What role should the government play?
Pundari: An ecosystem needs to be
identified in the SME space. The different challenges of SMEs need to be
identified. These include capacity, finance, management, operations,
legislative framework etc…and identify organizations, either government or
private or donor agencies that can effectively address each of these
challenges. The government should provide an enabling environment through
proper coordination of resources and legislations to enhance the growth of SMEs
in the country.
Interview conducted by Ian D. Hetri
