Red tape, discrimination a constraint for businesswomen<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
For Moudy Lintuuran, expanding her rubber supply business was not
\neasy. Trying to obtain a bank loan last year, she had to deal
\nwith a maze of bureaucracy and discriminative treatment.<\/p>\n
\"When I stepped into a bank (providing loans for small- and
\nmedium-sized enterprises), as recommended by a fellow
\nbusinesswomen, it felt as if I was in the forest,\" she told The
\nJakarta Post.<\/p>\n
\"It was the first time I applied for a loan from a bank. I
\nneeded about Rp 500 million (US$53,763).\"<\/p>\n
To get the loan, she offered her Rp 700 million house as
\ncollateral.<\/p>\n
However, she said, when it came to the actual process of
\napplying for the loan, she had to follow a long-chain of
\nbureaucratic procedures.<\/p>\n
She needed to present a business plan to the bank and legalize
\nthe business permit at the notary office.<\/p>\n
\"Then I found out that the amount that I requested was not
\napproved. In fact, the bank could grant no more than Rp 500
\nmillion loans,\" Moudy said.<\/p>\n
Finally, the bank approved a loan of Rp 300 million.<\/p>\n
She said it took her two weeks to arrange all the paperwork
\nand get the money.<\/p>\n
Moudy, who is the general secretary at the Jakarta branch of
\nthe Indonesian Businesswomen's Association (IWAPI), could
\nconsider herself lucky for just getting a loan at all.<\/p>\n
IWAPI chairwoman Suryani Motik said many of her members were
\nfacing problems in accessing credit from financial institutions
\nfor SMEs due to existing misconceptions.<\/p>\n
\"These misconceptions and our paternalistic culture put women
\nwho are income earners in second place,\" she said on Wednesday
\nduring a workshop held by IWAPI in conjunction with program for
\neastern Indonesia for SME assistance (PENSA) -- an affiliate of
\nthe World Bank's private arm, the International Finance
\nCorporation (IFC).<\/p>\n
Furthermore, Suryani explained, Indonesian wives could not get
\ntheir own tax numbers (NPWP) since Article 8 of Law No. 17\/2000
\non income tax stipulated that married women were prohibited from
\ngetting loans independent of their husbands.<\/p>\n
However, women were good potential clients of financial
\ninstitutions. According to a survey conducted by IWAPI and the
\nInternational Labor Organization (ILO), 87 percent of SMEs
\nrespondents in Jakarta were women -- the main earners in the
\nfamily with a loan recovery rate of 97 percent.<\/p>\n
IWAPI and IFC-Pensa had already signed a memorandum of
\nunderstanding (MOU) for a year to train women entrepreneurs.<\/p>\n
The agreement emphasized capacity building, public relations
\nand technical assistance, including conducting evaluations.<\/p>\n
\"Improving access to finance through technical assistance is
\npart of the core-competence of IFC,\" IFC-Pensa program manager
\nHans Shrader said.<\/p>\n
Bido said IFC-Pensa would provide training and technical
\nassistance for IWAPI members about how to obtain loans, manage
\nfamily businesses and deal with taxation.<\/p>\n
Suryani expected the joint effort would yield positive
\nresults. \"We hope we will be able to determine what the problems
\nare,\" she said.<\/p>\n
IWAPI and IFC-Pensa plan to issue a Voice of Women
\nEntrepreneurship magazine in the future targetting bankers and
\nother business executives and also plans to form a business
\ndevelopment service.<\/p>\n
Meanwhile, a bank executive, who spoke during the workshop,
\nsaid his bank did not discriminate against customers based on
\ngender.<\/p>\n
\"We'd rather prioritize the business-worthiness of our
\ncustomers,\" said Bank Bukopin business manager Suherly.<\/p>\n
He said that requirements in applying loans for SMEs were the
\nsame for everyone. Bukopin put no limit on loans to SMEs, he
\nsaid.<\/p>\n
Suherly said that last year, Bukopin provided Rp 8 trillion in
\nSME loans. It was likely to increase the funds for SMEs by 30
\npercent this year, he said. (004)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/red-tape-discrimination-a-constraint-for-businesswomen-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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