Easier tax for borrowers

JAKARTA (JP): Director General of Taxation Fuad Bawazier suggested yesterday that Bank Indonesia, the central bank, raise the amount of bank credits that can be obtained by borrowers without having to produce taxpayer registration numbers from Rp 30 million to Rp 50 million.

Such a ruling is needed to support the new small business loan plan which will extend unsecured credits of up to Rp 50 million to small businessmen or firms, Fuad said in a letter to Bank Indonesia Governor J. Soedradjad Djiwandono.

The central bank issued a ruling early this year which requires those applying for bank credits of up to Rp 30 million to submit copies of their tax registration numbers to support their loan applications.

According to Minister of Finance Mar'ie Muhammad, the collateral-free loan plan for small businesses will be launched by state banks next month. (04)