Mandiri ups financing for small businesses

Mandiri ups financing for small businesses

The Jakarta Post, Semarang, Central Java

Publicly listed Bank Mandiri signed an agreement with Central
Java province over the weekend to provide funds worth Rp 150
billion (US$16.5 million) to hundreds of People's Credit Banks
(BPRs) that help small businesses in the province.

The bank also pledged to help boost the business capacity of
BPRs in the province by providing training, management assistance
and information technology infrastructure.

Bank Mandiri president director E.C.W. Neloe said the
agreement was part of the bank's program to increase credit
disbursements to small business across the country.

"BPRs have the potential to become effective and efficient
distribution channels to small and micro-sized businesses,
especially those that cannot be reached by Bank Mandiri's own
networks," Neloe said in his speech during the signing ceremony
on Friday.

The bank had disbursed Rp 251 billion to 852 BPRs by October
this year, up from the Rp 137.9 billion given to 357 BPRs last
year. In Central Java, Bank Mandiri channeled Rp 34.9 billion to
202 BPRs by October.

Neloe said the agreement, which he and Central Java Governor
Mardiyanto signed in front of dozens of BPR directors,
demonstrated Bank Mandiri's commitment to providing financing
facilities to small businesses.

The loans are expected to increase the working capital and
business capacity of 609 BPRs in the province, which are 50
percent owned by the Central Java administration, 42.5 percent by
regional administrations and the remainder by the Central Java
Development Bank (BPD).

Under the agreement, Bank Mandiri would also provide training
to improve the quality of human resources in the BPRs in Central
Java BPRs.

Mardiyanto called on all BPR directors in the province to use
the funds to stimulate economic growth in the countryside.

Bank Mandiri, which employs 19,299 people and has 788
branches, had disbursed Rp 11.1 trillion in loans by October this
year, including Rp 3.4 trillion corporate and Rp 4.7 trillion
non-corporate loans.