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)