Small businesses in deep debt

TANGERANG (JP): Bad debts amounting to about Rp 1.5 billion (US$200,000) have burdened 146,512 families in Tangerang since 1996, due mainly to problems in marketing their products, an official said on Monday.

Yusuf Supardi, head of the local office of the National Family Planning Board, said the amount was part of Rp 9.5 billion in loans channeled to improve the welfare of local people.

"The large amount of bad debt is caused mainly by difficulties on the part of the borrowers to market their products." The problem is worsened by the lack of materials, he added.

Yusuf conceded there was also a lack of guidance from involved institutions and the absence of middle-scale entrepreneurs for their products.

The credit, given without collateral to people living in poor areas, is intended mainly for industries involved in food production and other secondary merchandise, especially handicrafts.

Each qualifying family receives between Rp 80,000 and Rp 180,000.

Yusuf said that his office would reevaluate requirements on obtaining the credit for 36,202 new applicants. (41/hhr)