Small businesses in deep debt

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)