Japan lends $490m to RI

Japan lends $490m to RI

TOKYO (AFP): The Export-Import Bank of Japan announced
yesterday a loan of 53 billion yen (US$490 million) to Indonesia
to finance capital investment by small-scale enterprises
including venture capital companies.

The Japanese government-owned bank said the loan would provide
medium- and long-term funds to such enterprises as well as
Indonesian financial institutions including state-owned banks and
private banks.

"This loan is also expected to help develop the domestic
financial market as a source of stable medium-to-long-term
funds," a statement said.

Small-scale enterprises employed almost 90 percent of the
Indonesian workforce or 70 million people in 1994, accounting for
an estimated 15 percent of gross domestic product (GDP) the
following year, the bank said.

The Indonesian government has highlighted the promotion of
such enterprises in its current 25-year development plan which
started in 1994.

Support measures include giving tax breaks to venture capital
companies, developing the domestic capital market and requiring
commercial banks to extend at least 20 percent of their loans to
small enterprises, defined as those with total assets not
exceeding Rp 600 million ($250,000).