Bank DKI extends loans to vendors

JAKARTA (JP): City-owned Bank DKI will extend loans of Rp 10 million per person to 40,000 vendors operating at traditional markets throughout the capital, an official said yesterday.

Suandi Gofar, head of the bank's loans department for small- and middle-scale customers, said his bank would give priority to vendors who lost their businesses during the massive riots last May.

At least 3,400 vendors at 13 markets reportedly lost their businesses during the riots when their stalls and merchandise were either looted or burned during the riots.

"But not all of the riot-victim vendors will automatically be given loans. We'll be very selective. Only those who have promising businesses and are capable of repaying the loans will get the facility," he said.

The loans will be channeled by the bank in cooperation with city-owned market management company PD Pasar Jaya in October, he said.

Pasar Jaya suffered at least Rp 56 billion (US$5.6 million) in losses at the 13 affected markets, he said, adding that the number of markets under the management of the firm was 152.

Seven of the 13 markets, namely the Palmerah and Cempaka Putih markets in Central Jakarta; Perniagaan, Glodok and Hayam Wuruk Lindeteves markets in West Jakarta; and Cipete and Pasar Minggu markets in South Jakarta, were totally destroyed.

Suandi said the loans, bearing an annual interest rate of 30 percent, would mature in two years, he said.

"Vendors will pay installments on a daily basis," he added. (cst)