Collateral-free loans hailed<\/p>\n
JAKARTA (JP): The government's plan to allow banks to extend
\ncollateral-free loans to small businesses, proposed by Minister
\nof Finance Mar'ie Muhammad two weeks ago, was discussed yesterday
\nat a monthly ministerial meeting on economics and finance.<\/p>\n
Coordinating Minister for Industry and Trade Hartarto said
\nthat all the ministers who attended the meeting had agreed to
\nsupport the policy.<\/p>\n
Besides allowing small businesses to obtain bank loans of up
\nto Rp 50 million (US$22,065) without collateral, the government
\nwill also try to find small enterprises partners among large-
\nscale businesses, he said.<\/p>\n
Minister Mar'ie said on Aug. 22 that the government was
\ndrafting legislation to allow the collateral-free loans. He said
\nthe regulation was expected to be completed within the next two
\nmonths.<\/p>\n
Minister of Cooperatives and Small Enterprises Soebiakto
\nTjakrawerdaya said that the government is currently formulating a
\ndefinition of the term \"small-scale business.\"<\/p>\n
\"We will brief the House of Representatives on the planned
\ndefinition during a deliberation on the bill on small
\nbusinesses,\" he said yesterday.<\/p>\n
He said that, at present, various government institutions,
\nincluding the central bank, have differing definitions of \"small-
\nscale business.\"<\/p>\n
Soebiakto said that the bill on small businesses defines a
\nsmall business as a firm with assets of up to Rp 200 million and
\nannual sales of up to Rp 1 billion.<\/p>\n
He said that, apart from providing the collateral-free loans
\nvia state-owned banks, the government will also provide
\nmanagement and marketing assistance to small businesses. (04\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/collateral-free-loans-hailed-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}