ADB to assist small and medium enterprises<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Manila-based Asian Development Bank (ADB) has approved a
\nUS$85 million assistance package for Indonesia's export-oriented
\nsmall and medium enterprises (SMEs), according to a government
\nofficial.<\/p>\n
Agus Tjahjana, the Director General of Industry and Trade for
\nSmall and Medium Enterprises at the Ministry of Industry and
\nTrade, said the package was aimed at increasing the financial
\ncapability for SMEs to fund their operations, purchase raw
\nmaterials and buy heavy machinery.<\/p>\n
However, he was quoted by Antara as saying that ADB would only
\ndisburse the loan after Indonesia finishes drafting the scheme on
\nthe loan distribution to the prospective exporters. The drafting
\nis now in progress.<\/p>\n
"We expect to complete the (loan distribution) scheme by May
\nof this year," he said.<\/p>\n
ADB will deliver the loan to four national banks, namely Bank
\nEkspor Indonesia, Bank Danamon, Bank Rakyat Indonesia and Bank
\nNegara Indonesia 46.<\/p>\n
The four banks will give credit at a lower interest rate to
\nthe SMEs.<\/p>\n
"The interest rate will be 1 percent or 2 percent lower than
\nthe commercial rate," said Agus.<\/p>\n
Small and medium enterprises have been the backbone of the
\neconomy amid the economic crisis which has seen the collapse of
\nmany local giant enterprises.<\/p>\n
Last year, the government made an agreement with the central
\nbank to encourage local banks, granting Rp 30 trillion worth of
\ncredit to SMEs.<\/p>\n
However, many analysts believe most banks are still reluctant
\nto provide credit for SMEs, doubting their ability to repay their
\nloans. Banks are now mostly interested in providing credit for
\nconsumers amid trends that show rising public consumption.<\/p>\n
Many SMEs still face difficulties in raising credit to boost
\ntheir businesses.<\/p>\n
Agus said recently, Minister of Industry and Trade Rini MS
\nSoewandi had ordered him to trace the credit given by local banks
\nfor the SMEs and requested information on which sectors had
\nutilized the facility.<\/p>\n
Agus however, cited difficulties in obtaining information,
\nsaying that most banks had refused to issue it due to their
\nclient-bank privacy policy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/adb-to-assist-small-and-medium-enterprises-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}