Inkud gets $540m in loans

JAKARTA (JP): The federation of village cooperatives (Inkud) has raised Rp 1.27 trillion (US$540 million) in syndicated loans from five private commercial banks -- Bank Danamon, Bank Universal, Bank Duta, Bank Niaga and Bank Bukopin.

The federation's president, Jeff Mustopha, said last week that Bank Damamon pledged Rp 700 billion of the syndicated loans, Bank Universal Rp 250 billion and Bank Duta another Rp 125 billion.

Each of the other two banks, Bank Niaga and Bank Bukopin, agreed to provide Rp 100 billion, Jeff said.

He said that the federation would use around Rp 170 billion of the total loans to finance its clove purchases.

The federation is the only body allowed by the government to buy cloves from farmers, which are then sold to cigarette producers.(hen)