US$17.39 loan set aside for people's forest projects<\/p>\n
JAKARTA (JP): The government has set aside Rp 40 billion
\n(US$17.39 million) this fiscal year to finance the development of
\npeoples' forests and Rp 15 billion to promote silk cultivation,
\nan official said yesterday.<\/p>\n
The Director General of Reforestation and Land Rehabilitation,
\nHendarsun S. Sanusiputra, said the funds would be given as soft
\nloans to farmers in 16 provinces.<\/p>\n
The loans for developing peoples' forests would go to farmers
\nin 13 provinces. The provinces are Aceh, North Sumatra, Riau,
\nJambi, Bengkulu, South Sumatra, West Java, Central Java, South
\nKalimantan, East Kalimantan, Central Kalimantan, South Sulawesi
\nand Lampung.<\/p>\n
The loans will support projects on 20,000 hectares.<\/p>\n
The loans for silk cultivation will go to farmers in West
\nJava, West Sumatra and South Sulawesi, covering 3,390 hectares.<\/p>\n
Hendarsun said the loans would be given to farmers through
\nnucleus estate and smallholder programs.<\/p>\n
Under the programs, wood or silk-based industries act as
\nnucleus estates which provide farmers with a market and
\ncollateral.<\/p>\n
This way farmers and smallholders' access to loans is through
\ntheir nucleus estate partners.<\/p>\n
\"We have no target or priority as to who will get these loans.
\nWhoever is ready may submit an application to Bank Pembangunan
\nDaerah (Provincial Development Bank),\" he said.<\/p>\n
Hendarsun signed an administrative arrangement agreement with
\nBank Pembangunan Daerah yesterday. The bank will distribute the
\nloans at the local level.<\/p>\n
The loans for peoples' forest mature in 11 years, with an
\neight-year grace period, while loans for silk cultivation mature
\nin five years with a one-year grace period. The loans have a 6-
\npercent interest rate.<\/p>\n
Hendarsun said the loans, which are the first of their kind,
\nwere expected to invigorate farmers' businesses.<\/p>\n
The amount provided by the government could be added or
\nsubtracted in the future depending on how farmers responded.<\/p>\n
\"If the farmers can only absorb Rp 20 billion of the Rp 40
\nbillion provided for peoples' forests, then we might consider
\ngiving them Rp 20 billion only in the future. But if they want to
\nborrow more than that this year, we may increase the amount next
\nyear,\" Hendarsun said.<\/p>\n
He said farmers would be given loans of Rp 2 million a
\nhectare. For provinces in Java, farmers eligible for the program
\nmust have between 0.25 and 1.5 hectares, while those outside Java
\nmust have between 0.5 and 3.4 hectares.<\/p>\n
He said the government had chosen provinces that have a
\ntradition of making and using silk. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us1739-loan-set-aside-for-peoples-forest-projects-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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