IBRA banks to extend Rp 300 billion to SMEs
IBRA banks to extend Rp 300 billion to SMEs
JAKARTA (JP): Ten commercial banks controlled by the
Indonesian Banking Restructuring Agency (IBRA) agreed on Tuesday
to extend Rp 300 billion (US$35.3 million) worth of credit to
small and medium enterprises.
The loans, under a special government program, carry interest
rates of between 16 to 18 percent, compared to 23 percent for
ordinary commercial loans.
The loan agreements were signed by the representatives of the
banks and the recipients at the office of the State Minister of
Cooperatives and SMEs Zarkasih Nur. The state minister, Ibra
chairman Cacuk Sudarijanto and the junior minister for national
economic restructuring, witnessed the event.
The 10 banks were Bank Central Asia (BCA), Bank Universal,
Bank Danamon, Bank Bukopin, Bank Lippo, Bank Niaga, Bank Prima
Express, Bank Patriot and Bank Artamedia. They had been taken
over by IBRA because of their huge unpaid debts.
Another IBRA-controlled bank, Bank Bali, was not included
because it has yet to be recapitalized.
The recipients of the loans were blue jeans producer Aldiani
in Jakarta, Mitra Usaha cooperatives (palm oil, Central
Kalimantan), Iin Suparni (transportation, Jakarta), PT Sabindo
Perdana Transport (trucking, Jakarta), KUD DAU (procurement of
dairy cows, Malang, East Java), KUD Rukun Tani Makmur (oil palm
plantation, South Kalimantan), PT Meteor Komunikatama (trading,
Jakarta), Harya Widjaja (base frame, Jakarta), Firman Gunawan
(trading, Jakarta) and S. Anton (food agent, Jakarta).
Cacuk said small and medium enterprises have shown greater
resilience during the economic crisis. They need to strengthen
their capital structure and managerial capabilities, he said.
Zarkasih said the special loan program has cut the chain of
bureaucracy in securing funding for these enterprises.
IBRA said that between January and July, the 10 banks have
disbursed Rp 3.94 trillion worth of credit to SMEs, accounting
for nearly 20 percent of the total loans disbursed.
BCA and Bank Universal led the way, respectively extending Rp
1.18 trillion and Rp 1.07 trillion during the period. (02)