Bank Bali, Makro sign agreement

Bank Bali, Makro sign agreement

JAKARTA (JP): Bank Bali agreed yesterday to provide factoring
facilities to suppliers of Makro, a major wholesaler company, a
move that will help many small-scale traders and companies.

Under the deal, Bank Bali will take over the payments by Makro
to suppliers and will pay up to 80 percent of the account
receivables in advance.

An agreement was signed by Hendra Firmansjah, a director of
Bank Bali and Viviyanti Ashali, a finance director of PT Karabha
Unggul (Makro) which operates Makro outlets in Indonesia.

A separate agreement was signed between Bank Bali and
representatives of the Kramat Jati Central Market Cooperative and
PT Triganna Mandiri Bakti, a suppliers organization.

Factoring facilities will help suppliers bolster their working
capital, Hermansjah said.

"We were drawn to this agreement because, apart from
facilitating suppliers in administration and collection, this is
in line with Makro's policy to support cooperatives and small
enterprises," Karabha Unggul's vice president Sigit Nugraha said.

Sigit pointed to Bina Mitra Usaha, a division in his company
established to support the development of small companies and
traders among its suppliers.

According to publicly listed Bank Bali, the scheme, known as
Bali Anjak Piutang, is offered to individuals or corporations
whose businesses are not subject to seasonal fluctuations and
have continuous production every month. It is given for credit
with periods ranging from 14 to 180 days. (08)