Forestry funds for farmers

Forestry funds for farmers

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo has authorized state-owned Bank Rakyat Indonesia to distribute loans worth Rp 32 billion (US$13.9 million), which derive from reforestation funds, to farmers.

After signing an agreement on the loans yesterday, Djamaludin said that, of the funds, Rp 30 billion will be distributed to farmers living around forests in nine provinces -- North and South Sumatra, Riau, Jambi, Yogyakarta, South Sulawesi and West, Central and East Java -- while the remaining Rp 2 billion will be used to support silk farmers in three provinces: West Java, West Sumatra and South Sulawesi.

The bank's president, Djoko Santoso Moeljono, told reporters that farmers need not provide any collateral to obtain loans of up to Rp 100 million, which carry an interest rate of six percent per annum with a repayment period of up to 10 years.

Djamaludin said the loans should be distributed during the current fiscal year and that they are expected to help finance 16,000 hectares of crop plantations.

The Ministry of Forestry has so far accumulated a total of Rp 3.1 trillion in reforestation funds, which includes Rp 700 billion earned in interest.(04)