Govt to help export companies

JAKARTA (JP): The government has decided to allocate Rp 3 billion (US$600,000) in cheap loans to help export-oriented small and medium companies and cooperatives.

The credit scheme, offered by state-owned social security firm PT Jamsostek, started on Dec. 1 and aims to help organizations bolster their export capacity.

"The President summoned us in order to check that his recent instructions were being realized, especially the new credit scheme," Minister of Cooperatives Subiakto Tjakrawerdaya said after meeting with President Soeharto at his residence on Jl. Cendana, in Central Jakarta.

Soeharto called together yesterday Subiakto, State Minister of Population Haryono Suyono, State Minister of Public Housing Akbar Tandjung, Minister of Manpower Abdul Latief and Minister/State Secretary Moerdiono.

He told PT Jamsostek last month to allocated Rp 2 trillion of its investment funds to help small and medium firms and cooperatives, and provide an additional Rp 1 trillion for low- cost housing loans.

"We call on small firms and cooperatives to contact state- owned banks and apply for this cheap credit so that their business activities can go ahead without being affected by the current high-lending rates," Subiakto said.

Latief said last month that Jamsostek would receive 14 percent in interest per year from their funds lodged with state banks, which would then channel the funds to small firms at 17 percent -- far lower than the market rate of 28 percent.

In addition to the Rp 2 trillion fund, Jamsostek was earlier ordered to deposit Rp 1 trillion in state-owned Bank Tabungan Negara (BTN) at a lower rate than the current market rate.

"The President called on us to accelerate the realization of the credit for the construction of low-cost housing," Akbar said.

BTN used the funds for its low-cost housing loans, offering similar interest rates for loans allocated for small firms.

Akbar said BTN has received Rp 780 billion of the Rp 1 trillion fund that the President requested.

"Pak Moerdiono and I were instructed by the President to monitor the completion of the fund disbursement." (prb)