Jasa Marga loses Rp 2.1b in markup<\/p>\n
JAKARTA (JP): PT Jasa Marga, the state-owned toll-road
\ndeveloper and operator, has lost Rp 2.1 billion (US$917,030) in
\nbad credits due to mark up practices by some officials of the
\nMinistry of Cooperatives and Small Enterprises, a spokesman said.<\/p>\n
Jasa Marga's public relations officer, Yunial Harun, told
\nnewspeople that the loss incurred in its lending programs for
\nsmall firms and cooperatives had been caused mainly by officials
\nwho pocketed part of the loans originally extended to small
\nborrowers.<\/p>\n
\"Some officials in charge of administering loan applications
\nfrom small borrowers to Jasa Marga had deliberately marked up the
\nsums of the loans asked for and pocketed the balance,\" Yunial
\nsaid.<\/p>\n
The provincial offices of the cooperatives ministry are the
\nonly institution in Indonesia's 27 provinces authorized by the
\ngovernment to distribute small-scale credits from state-owned
\ncompanies, including Jasa Marga, to small-scale businesses and
\ncooperatives.<\/p>\n
\"Every soft loan to be given by state firms to small
\nbusinesses and cooperatives has to be endorsed by them,\" Yunial
\nsaid.<\/p>\n
Jasa Marga and all other state-owned companies have been
\nrequired by the government to set aside up to 5 percent of their
\nnet earnings for helping small businesses and cooperatives.<\/p>\n
Yunial said several cooperatives officials apparently have
\nabused the authority by inflating the sums of the loans written
\non the application forms.<\/p>\n
Citing an example, he said a small-scale businessman wanted to
\nget a loan of Rp 2 million from Jasa Marga and an official in
\ncharge of administering the application marked up the loan to Rp
\n3 million and pocketed the balance.<\/p>\n
\"When the borrower asked the official to repay the balance
\nupon the maturity of the loan, the official simply said the loan
\nshould not necessarily be repaid because Jasa Marga will not take
\nany measures against defaulting borrowers,\" he said in recounting
\none instance.<\/p>\n
Commenting on Jasa Marga's complaints, Minister of
\nCooperatives and Small Enterprises Subiakto Tjakrawerdaya said
\nyesterday that he will deal firmly with officials committing mark
\nup practices.<\/p>\n
\"I'll move against the officials,\" he told the press.<\/p>\n
Mark up practices are reportedly common in Indonesia and have
\nbeen cited as one of the reasons behind the Rp 9.9 trillion in
\nbad credits suffered by banks until June this year. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jasa-marga-loses-rp-21b-in-markup-1447893297",
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"sponsor": "Okusi Associates",
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