Soft loan for the poor

TANGERANG (JP): The mayoralty has allocated Rp 2 billion in soft loans to help poor families start or develop businesses to survive the economic crisis.

The loans have a 12 percent interest rate and are provided by Bank Negara Indonesia in cooperation with the National Family Planning Board (BKKBN).

As much as Rp 836 million of the funds have already been channeled to 109 farmer groups, with each receiving between Rp 50,000 (US$3.33) and Rp 5 million, local BKKBN chief Hikmatullah said Monday.

Tangerang Mayor Djakaria Machmud said the assistance would mostly go to roadside vendors.

"Food vendors and craftsmen will get priority in the credit scheme," he told Antara. "The loan should be disbursed as soon as possible."