BI renews deal on micro financing

JAKARTA: Bank Indonesia (BI) has renewed its deal with the Committee for Poverty Alleviation on developing the country's micro, small and medium enterprises as they have played a great role in helping absorb unemployment and reduce poverty.

Witnessed by President Susilo Bambang Yudhoyono, the joint agreement was signed by BI Governor Burhanuddin Abdullah and Coordinating Minister for the People's Welfare Alwi Shihab, as the committee chairman, at the State Palace on Wednesday.

The agreement, which was first made in 2002, stipulates the role of the central bank in encouraging the banking industry to channel their loans to the businesses, especially those that are export oriented, to help nurture the sector.

For this year, the banking industry is expected to provide some Rp 60 trillion (US$638 million) in new loans for the businesses. -- JP