Deal on pensioner credits

Deal on pensioner credits

JAKARTA (JP): PT Taspen, the state-owned company responsible for insurance and pensions for civil servants, commissioned Bank Bumi Artha yesterday to manage its loans to pensioners.

The loan management deal was signed by Taspen's president, Purwanto Abdulcadir, and the bank's president, Rachmat M.S.

Purwanto said that Taspen, which booked premium revenues of about Rp 796 billion (US$380 million) last year, has so far provided about Rp 26.11 billion ($12.4 million) in low interest rate loans of around Rp 26.11 billion to its members.

In addition, Taspen has extended loans totaling about Rp 16 billion to small firms and cooperatives as part of its effort to support the development of small and medium-sized businesses.

Taspen's total investment reached about Rp 8.3 trillion (US$3.86 billion) last year, about 50 percent of which was placed in bank deposits.(hen)