JAKARTA (The Jakarta Post) -- The Jakarta Chamber of Commerce and Industry (Kadin DKI) plans to boost the development of small and medium enterprises (SMEs) by facilitating the export of their products to the Middle East.

The commodities -- comprising garments, leather and embroidered goods -- will be exported to Iran, Kadin DKI chairman Sofjan S. Pane said Wednesday.

"Our country will also have a good opportunity to market our products to other Middle Eastern countries, since Iran has simplified the procedures for free trade," he said.

He said that Kadin DKI was working in cooperation with Kadin offices in West Java and Banten, where many of the entrepreneurs resided.

According to Sofjan, a meeting with the Tehran Chamber of Commerce and Industry is scheduled for next month.

In order to facilitate the small and medium businesses, Kadin DKI has formulated programs to modify the funding and transaction system, as well as the management of the products.

"We help to ensure that all of the transactions will be safe for the enterprises and for the banks that provide the funding," Sofjan said.

He acknowledged that the growth of small and medium enterprises would contribute to the city's economic growth.

The Jakarta administration has targeted economic growth of 6.6 percent in 2007, a rise by 0.8 percent from last year.

Small and medium enterprises have encountered problems in marketing their products due to the low domestic purchasing power, besides having to compete with foreign products marketed in the country.

"Our local products actually have great potential in the international market because of their high quality," he said.