PNM to manage microcredit scheme<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government plans to appoint state-owned investment firm PT
\nPermodalan Nasional Madani (PNM) to exclusively manage and
\nchannel proceeds collected from state-owned enterprises (SOEs) to
\nhelp small and medium-sized enterprises (SMEs) starting next
\nyear.<\/p>\n
State Minister of State Enterprises Sugiharto said on Tuesday
\nthat the new plan had been drawn up as most of the proceeds in
\nthe past had been poorly managed by various institutions, with a
\nhuge amount of the loans turning sour.<\/p>\n
"We should learn from the past," Sugiharto said, pointing out
\nthat between 50 percent and 60 percent of the SOE funds channeled
\nby the various institutions in the form of loans to SMEs during
\nthe past couple of years had turned bad.<\/p>\n
He refused, however, to disclose the total amount of the bad
\nloans.<\/p>\n
The government hopes that with one-roof loan management and
\nchanneling by PNM, the amount of non-performing loans will drop
\nto around 10 percent.<\/p>\n
Sugiharto said the government would channel between 1 percent
\nand 5 percent of the SOEs' net profits next year to PNM to
\nfinance local micro-entrepreneurs, but with the prior approval of
\nthe shareholders of the SOEs.<\/p>\n
The government has targeted harvesting at least Rp 1 trillion
\n(US$111 million) next year from the SOEs for fund the microcredit
\nscheme.<\/p>\n
In addition, the government is also trying to harness idle
\nfunds parked in banks, which are currently estimated at some Rp
\n300 trillion, to help expand lending to micro-businesses next
\nyear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pnm-to-manage-microcredit-scheme-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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