Government launches new credit scheme
Government launches new credit scheme
JAKARTA (JP): The government launched a new credit scheme
yesterday called Business Partnership Promotion Credit (KPKU) to
help develop small businesses.
Coordinating Minister for People's Welfare and Poverty
Eradication/Chairman of the National Family Planning Board
Haryono Suyono said credit would be provided to help small
businesses run by members of the government-sponsored prosperous
family program (Prokesra).
The low-interest loans, however, would be given only to those
people who have a partnership program with small and medium
companies and cooperatives, he said.
"The credit will have a low interest rate and will available
in every district and municipality, " Haryono said after signing
a memorandum of understanding with Bank Indonesia and the
Ministry of Finance on the loan facility.
The interest rate will be 12 percent per annum, much lower
than the commercial rates of about 50 percent.
Haryono said that Bank Indonesia, the central bank, and the
Ministry of Finance would, in the first phase, provide Rp 500
billion (US$58.8 million).
"In the first phase, the credit will be focused on helping
poor people develop their own small business. Around Rp 5 billion
will be used for the training program for over 65,000 members of
Prokesra and over 7,000 field training officials," Haryono said.
The Prokesra program, introduced several years ago, aims to
help poor people in both rural and urban areas.
The credit, he said, would be directly channeled through state
banks Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI)
to every district and municipality throughout the country, which
will initially receive a modest Rp 1 million to Rp 2 million,
depending on the capability and the development of the area.
Haryono said the training programs would concentrate on
improving the management of small and medium businesses,
production and marketing techniques, and also aim to introduce a
banking system.
In past years, the government channeled funds through
organizations known as People's Prosperity Business Credit
(Kukesra) and Prosperous Family Savings (Takesra) to help poor
families start their own small businesses.
Prokesra funds are currently helping nearly five million
families across the country.
Haryono said the funds would also be focused on improving the
business ability of the members of the Kukesra and Takesra
programs.
He said that every member of the Prokesra program could get up
to Rp 2 million in credit, depending on their business
performance.
Haryono said that the KPKU program would need at least Rp 3
trillion in the coming years; this is expected to be provided by
the central bank along with private sources.
"Hopefully, the provision of this credit will keep alive the
grassroots economy, especially in the midst of the country's
current economic turmoil," he said. (gis)