Firm aiding SMEs slated to operate in two months

JAKARTA (JP): The government said on Friday that PT Permodalan Nasional Madani, a state-owned financial company to cater to the needs of small and medium enterprises (SMEs), will be operational within two months.

B.S. Kusmuljono, an assistant to State Minister of the Empowerment of State Enterprises Tanri Abeng, said the new institution would provide loans to help finance SMEs.

"We will then make it feasible for SMEs to go public, and PNM would appoint or establish an investment company to buy their shares," Kusmuljono said.

The investment company will also be entitled to buy up to 20 percent of government shares at five state enterprises listed on the Jakarta Stock Exchange.

It will include its shareholding in the firms and in five SMEs soon to be listed in a mutual fund to be sold to domestic and foreign investors.

"We will include shares of the state enterprises as a sweetener to attract investors to buy the mutual fund," Kusmuljono said.

Kusmuljono said PNM would also establish a special financing company to channel the government's subsidized credits to SMEs.

PNM will have authorized capital of Rp 1.5 trillion (US$170 million), of which Rp 300 billion will be paid-up using funds from the 1999/2000 state budget.

Kusmuljono assured that PNM's programs would not be redundant in relation to 17 subsidized credit schemes for SMEs introduced last October by Minister of Cooperatives and Small Enterprises Adi Sasono.

"We will work closely with the Ministry of Cooperatives and Small Enterprises," Kusmuljono said.

He said Malaysian experts helped in preparing the company's establishment.

He said his office would hold a seminar on PNM on March 30 to March 31, which would be supported by PT Danareksa Fund Management, PT Bank Muamalat Indonesia and PT Bahana Artha Ventura.

Tanri and Adi are scheduled speakers. (02)