Kadin-sponsored guarantee fund set to operate<\/p>\n
JAKARTA (JP): Guarantee-fund firm PT Penjamin Kredit Pengusaha
\nIndonesia is ready to guarantee credits extended to small and
\nmedium enterprises this year.<\/p>\n
The company's president, Mahmud Jakile, said recently that the
\nfund got its operating license from the government only last
\nAugust -- 10 months after its launch.<\/p>\n
\"Only after we got the license, could we look for prospective
\nclients. Nevertheless, we have listed some small and medium
\ncompanies as our prospective clients,\" Jakile said.<\/p>\n
They include West Sumatra handicraft firms grouped in a
\ncooperative, small firms affiliated to a state plantation firm in
\nSouth Sulawesi, two small firms in Irian Jaya and others in the
\ngreater Jakarta area.<\/p>\n
Jakile said earlier the fund would guarantee bank loans to
\nsmall businesses of between Rp 50 million (US$20,990) and Rp 250
\nmillion.<\/p>\n
It does not guarantee loans below Rp 50 million because state-
\nowned banks have been encouraged to extend collateral-free loans
\nof up to Rp 50 million to small enterprises.<\/p>\n
\"As a profit-oriented firm, we need to select only businesses
\nwith good prospects. If possible, we will prepare them to go
\npublic by selling shares on the capital market,\" Jakile said.<\/p>\n
The fund's sources of revenues will include interest earned on
\nbank deposits as well as commission fees, arrangement fees and
\nconsultation fees from its client companies. Funding will also
\ncome from banks using its service to select small companies as
\ncustomers.<\/p>\n
The guarantee fund was established with an initial paid-up
\ncapital of Rp 6.16 billion (around US$2.6 million) in October,
\n1995, by the Indonesian Chamber of Commerce and Industry in
\ncooperation with the ruling Golkar party.<\/p>\n
The chamber's chairman Aburizal Bakrie said last week the
\nguarantee fund had collected Rp 12 billion from local tycoons as
\nits capital -- far short of its original target of Rp 50 billion.<\/p>\n
At the launching of the fund last Oct. 31 noted figures and
\nbig businesses participated in its establishment. Minister of
\nCooperatives and Small Enterprises Subiakto Tjakrawerdaya, PT
\nBakrie Investindo, and business tycoons Eka Tjipta Widjaja and
\nSudwikatmono helped strengthen the fund's capital by contributing
\nRp 1 billion each.<\/p>\n
Aburizal said the establishment of the guarantee fund was
\nexpected to help spur the development of small enterprises so
\nthat they could grow into medium and then large businesses.<\/p>\n
\"As we all understand the main weaknesses of small businesses
\nare that they lack capitals and managerial skills and that they
\nare not bankable. Therefore this guarantee fund is expected to
\nhelp small businesses secure bank credit to groom their
\nbusinesses,\" Aburizal said.<\/p>\n
He added the guarantee fund was to complement the government-
\nsponsored venture capital programs that had invested in small
\nenterprises through equity participation. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kadin-sponsored-guarantee-fund-set-to-operate-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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