Credits without collateral<\/p>\n
Finance Minister Mari'e Muhammad has disclosed part of a
\ngovernment plan to extend credits without the requirement of
\nphysical collateral for small businesses. The credits, to be
\nreferred to as Kredit Kelayakan Usaha (Business Viability
\nCredits), will carry a ceiling of Rp 50 million and require only
\na certificate of viability as collateral. During the first phase,
\nthe credits will be extended by state-owned banks.<\/p>\n
Apart from capital, other constraints are at present limiting
\nthe growth possibilities for small-scale businesses. Low
\nmanagerial skills, limited marketing abilities and the "menace"
\nof big businesses are among the problems with which they have to
\nstruggle.<\/p>\n
Apart from providing those easy credits the government should
\nalso feel obliged to protect the right of existence of small-
\nscale businesses. Perhaps it is appropriate to reserve certain
\nlines of business for these businesses exclusively, barring big
\nbusinesses from entering.<\/p>\n
At present, even soy sauce mills, which, in the past,
\nsustained numerous small businesses have been taken over by big
\nbusinesses. Who knows, the time will come when tempe (fermented
\nsoy bean cakes) and tofu mills will have to suffer the same fate.
\nIf this happens the provision of special credits for small-scale
\nbusinesses will carry little meaning.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/credits-without-collateral-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }