Micro loans extended to poor families in E. Java<\/p>\n
JAKARTA (JP): Bank Indonesia, the central bank, yesterday
\nintroduced loans for very small businesses in East Java in a bid
\nto help eradicate poverty in the province.<\/p>\n
Bank Indonesia's director of credit, Mukhlis Rasyid, yesterday
\nsigned documents on the channeling of the credit from the Asian
\nDevelopment Bank to the East Java development bank, 11 secondary
\nbanks and a number of non-governmental organizations in East Java
\nto help alleviate poverty in the province.<\/p>\n
Bank Indonesia said in a statement yesterday that it has also
\nadvocated the extension of such loans -- called micro credit --
\nin Central Java.<\/p>\n
East and Central Java are among the five provinces chosen by
\nBank Indonesia for its micro-credit pilot project. The other
\nprovinces in the project include West Java, South Kalimantan and
\nWest Nusa Tenggara.<\/p>\n
Micro loans, each with a value of up to Rp 500,000 (US$213),
\nwill be channeled to poor families and individuals or a group of
\npoor families which run very small businesses. The loans will be
\navailable through development banks, secondary banks and non-
\ngovernment organizations in the five provinces.<\/p>\n
\"The main objectives of extending such loans are to help
\ndevelop very small rural businesses, to help eradicate poverty
\nand to encourage the participation of women in the development,\"
\nBank Indonesia announced.<\/p>\n
The central bank has earmarked Rp 90 billion (US$38.5 million)
\nfor micro credit. Of the total fund, 60 percent will come from
\nthe Asian Development Bank.<\/p>\n
The micro-credit program so far involves 37 secondary banks,
\n40 institutions specializing in extending credit to poor people
\nand 16 non-governmental organizations in Central and East Java.<\/p>\n
Within the next five years, it is expected that the central
\nbank's micro loans will involve 700 institutions specializing in
\nextending credit to poor people, 400 secondary banks, 30 non-
\ngovernmental organizations and 300,000 customers. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/micro-loans-extended-to-poor-families-in-e-java-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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