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)