Govt approves Rp 3.1t loan package for SMEs<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The government has approved a Rp 3.1 trillion (US$348 million)
\nsoft loan package for the country's small and medium enterprises
\n(SMEs), Ali Marwan Hanan, the state minister for cooperatives and
\nSMEs, said on Thursday.<\/p>\n
Ali said that the disbursement of the loan package would start
\nlater this month.<\/p>\n
\"The minister of finance has approved the loan, and he has
\nalso assigned me to select a number of financial institutions to
\nchannel the package.<\/p>\n
I have appointed those institutions today,\" Ali told reporters
\nafter attending a national banking seminar here.<\/p>\n
He said that among the selected institutions were provincial
\ndevelopment banks, state-owned pawnshop operator Perum Pegadaian,
\nand state-owned financial institution PT Permodalan Nasional
\nMadani.<\/p>\n
Ali said that medium-sized enterprises could borrow up to Rp
\n500 million, while the limit for small-sized companies was Rp 50
\nmillion.<\/p>\n
No details of the structure of the soft loan package were
\navailable.<\/p>\n
\"We are hoping that the financial institutions that we have
\nassigned to channel the loans can provide the SMEs with better
\ncontractual terms and other benefits, compared to the
\nconventional (bank) loans,\" said Ali.<\/p>\n
SMEs had long been shunned by the country's banking industry.
\nBut after the late 1990s financial crisis which sent many banks
\nand big companies to the wall, there is now a growing interest in
\nlending to the SMEs.<\/p>\n
Number of SMEs in 2001 and 2002<\/p>\n
Business Size 2001 % 2002 %
\n=============================================================
\nSmall enterprise 39,869,505 99.85 41,301,263 99.85
\nMedium enterprise 57,681 0.14 61,052 0.15
\nSMEs 39,927,186 99.99 41,362,315 0.01
\nBig businesses 2,084 0.01 2,198 0.01<\/p>\n
Total 39,929,270 100.00 41,364,513 100.00
\n=============================================================
\nSource: The Office of the State Ministry for Cooperatives and
\nSMEs<\/p>",
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