YDBA and partners to provide loans to SMEs

YDBA and partners to provide loans to SMEs

JAKARTA (JP): Yayasan Dharma Bhakti Astra (YDBA) and its
partners, including Bank BNI, Bank Mandiri, Bank Syari'ah
Mandiri, Bank Bukopin and Bank Rakyat Indonesia will provide
about Rp 4.9 billion (US$433.60 million) in loans to help small
and medium-scale enterprises (SMEs).

The foundation's chairperson Krisni Murti M.S. said here on
Tuesday that YDBA, a foundation set up by the automotive giant
Astra International to help SMEs, would act as the "facilitator"
of the loans.

The foundation's partners, which also include PT Sucofindo and
PT Surveyor Indonesia, would be responsible for providing the
financial assistance.

She said 84 of 334 small and medium-scale companies under the
foundation's supervision would be eligible to get the special
loans.

"The loan scheme is especially arranged for companies under
its supervision," she said, adding that the foundation's partners
provided about Rp 5.4 billion of similar loans last year to 34
companies.

"Thus far, as of May this year, about Rp 1.8 billion loan
schemes have been extended to 57 SMEs with the foundation's
help," Krisni said.

She said that the foundation was established in 1980 to help
small and medium companies access lending facilities from banks
or other institutions by providing them with business consultancy
services such as management, marketing and production training.

"This year, the foundation helped 334 SMEs, 58 percent of
which are in the furniture business, with 31 percent in the
manufacturing industry, while the remaining 11 percent are in the
handicraft business," she said.

One of the SMEs, PT Wirasindo Santakarya, producer and
exporter of furniture products, has shown significant growth in
its business.

The company's export sales rose by 25 percent to Rp 15 billion
last year, from Rp 12 billion in the previous year, the company's
president Hari Basuki said. (03)