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Mon, 20 Dec 2004

JP/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.