Bank channel loans to small enterprises
Bank channel loans to small enterprises
JAKARTA (JP): Bank Indonesia, the central bank, said yesterday
that subsidized loans for small- and medium-scaled enterprises
had been made available through state banks and Bank Bukopin
since early this month.
Small and medium firms or cooperatives needing additional
working capital to run or expand their businesses should go to
one of seven state banks or Bank Bukopin to get the low-interest
loans, the central bank said in a statement.
The seven state banks are Bank Negara Indonesia, Bank Rakyat
Indonesia, Bank Ekspor Impor Indonesia, Bank Tabungan Negara,
Bank Dagang Negara, Bank Bumi Daya and Bank Pembangunan
Indonesia.
Small and medium firms could apply for working capital loans
of up to Rp 3 billion (US$545,450), with one-year maturity and a
17 percent interest rate -- far below the market rate of between
25 percent and 35 percent.
As for workers, they could also apply for such subsidized
loans, with a maximum Rp 25 million per worker.
"This working capital loan for small and medium enterprises
could be in the form of a new loan or an additional loan for an
existing business or for business expansion which does not need
new investment credit," the central bank said.
The assigned banks, nevertheless, should give priority to
small and medium firms working in labor intensive businesses so
the loans could benefit more people.
Besides being labor intensive, the applying firms should be
engaged in export activities or distribution businesses,
especially those dealing with people's daily needs.
Companies eligible for the subsidized loans are industrial
companies with maximum assets of Rp 5 billion or nonindustrial
firms with maximum assets of Rp 600 million, excluding land and
buildings, or with a maximum turnover of Rp 3 billion.
The goal of these subsidized loans was aimed at reducing the
negative impact of the monetary crisis, especially for low-income
workers, the central bank said.
Banks assigned by the government to channel the loans should
process loan proposals and assess the viability of the proposals
based on prudent banking practices, it said.
The funds for the subsidized loans had been taken from state-
owned workers insurance firm PT Jamsostek and other state firms.
President Soeharto instructed Jamsostek last month to channel
Rp 2 trillion of its investment funds to state banks or Bank
Bukopin to give loans to small- and medium-sized firms. (rid)