{
    "success": true,
    "data": {
        "id": 1203739,
        "msgid": "small-firms-not-viable-for-banks-1447893297",
        "date": "1995-01-28 00:00:00",
        "title": "Small firms not viable for banks",
        "author": null,
        "source": "",
        "tags": null,
        "topic": null,
        "summary": "Small firms not viable for banks JAKARTA (JP): Most small-scale industrial companies still face difficulties in obtaining credit from commercial banks, said an executive of the Ministry of Industry yesterday. Atih Suryati Herman, the head of the board for the development of small-scale industries, said most small-scale companies are still considered unacceptable for bank loans due to their inability to provide sufficient collateral and to meet other lending requirements.",
        "content": "<p>Small firms not viable for banks<\/p>\n<p>JAKARTA (JP): Most small-scale industrial companies still face<br>\ndifficulties in obtaining credit from commercial banks, said an<br>\nexecutive of the Ministry of Industry yesterday.<\/p>\n<p>Atih Suryati Herman, the head of the board for the development<br>\nof small-scale industries, said most small-scale companies are<br>\nstill considered unacceptable for bank loans due to their<br>\ninability to provide sufficient collateral and to meet other<br>\nlending requirements.<\/p>\n<p>\"That's why only a handful of small-scale industrial companies<br>\ncan acquire bank loans,\" Atih said in a workshop on credits to<br>\nsmall-scale industries.<\/p>\n<p>She said that the outstanding credits given to small-scale<br>\nindustrial companies as of last October reached around Rp 3.09<br>\ntrillion, accounting for less than 10 percent of the total loans<br>\nextended to all small businesses in the country.<\/p>\n<p>Atih said that the Ministry of Industry has cooperated with<br>\nother government institutions, such as the central bank, state-<br>\nowned companies and the Ministry of Education and Culture to<br>\nimprove their skills in management, financing and marketing.<\/p>\n<p>\"We, as well, have asked a number of state-owned firms to act<br>\nas guarantors of loans for small businesses,\" she said about her<br>\noffice's program in widening the access of small businesses to<br>\nbank funding.<\/p>\n<p>Commercial banks are required to set aside at least 20 percent<br>\nof their credit portfolios to small-scale companies as part of<br>\nthe government's program to help financially weak businesses in<br>\nthe country.<\/p>\n<p>However, Riyanto, a noted banking analyst, said that many<br>\ncommercial banks face obstacles in meeting the requirement.<\/p>\n<p>Certain banks consider providing credit to small businesses<br>\nnot only carries high risks but also offers less gains, Riyanto<br>\nsaid, adding that the high transaction costs could be the main<br>\nreason why many banks are still reluctant to finance small<br>\nbusinesses. (hen)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/small-firms-not-viable-for-banks-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}