Eastern Indonesians to get bank loans<\/p>\n
JAKARTA: The country's banks have eased their loan rules to allow
\nentrepreneurs in the eastern part of Indonesia to obtain loans
\nwith less restrictions, according to Sate Minister for the
\nAcceleration of Development of Eastern Indonesia Manuel Kaisepo.<\/p>\n
\"Previously, the banks' regional branches were only allowed to
\ngive a maximum loan of Rp 300 million (US$36,000). Above that
\namount, they (the entrepreneurs) have to fly to Jakarta to seek
\napproval from a bank's headquarters.<\/p>\n
\"It is thus a high-cost effort to get loans,\" the minister
\nsaid on the sidelines of a three-day regional investment forum on
\nThursday.<\/p>\n
Kaisepo explained that after several meetings with some banks,
\nit was agreed that entrepreneurs from eastern Indonesia could
\nrequest up to Rp 2 billion for a loan without having to seek
\napproval from Jakarta.<\/p>\n
He did not specify which banks, however.<\/p>\n
The eastern part of Indonesia is relatively poorer and less
\ndeveloped than western parts of Indonesia where most of the large
\nIndustrial centers and main government offices, such as Medan and
\nJakarta, are located.<\/p>\n
As a result most of the development projects have been
\nconcentrated on the islands of Java and Sumatra over the past
\nseveral decades.<\/p>\n
The government is now seeking to boost development on the
\neastern islands and has appointed a minister especially tasked to
\nhandle the matter.<\/p>\n
Kaisepo added that some banks also agreed to provide loans to
\nfishermen and farmers in the region.<\/p>\n
\"We are looking for the best formula to establish a fund that
\nwill guarantee the repayment of loans channeled to those groups
\nof people,\" he said.<\/p>\n
\"For example, local administrations may allocate some Rp 5
\nbillion out of their budgets to set up the fund.\" --JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eastern-indonesians-to-get-bank-loans-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}