Bank DKI extends loans to vendors

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)