Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Economy  >>   Indo banks facing difficulties with micro credit
NEWS UPDATES 6 September 2010

Indo banks facing difficulties with micro credit

Related Stories

August 27, 2010
Indo banks to meet new LDR rules

August 16, 2010
Indonesia's GDP predicted at 6.3percent in 2011

August 14, 2010
Cheap rice to be distributed to Indo poor

August 2, 2010
U.S. firm produces more Indo copper, gold

July 5, 2010
Bank Indonesia moves on inflation

Indonesia’s major banks are still facing several constraints in disbursing government-sponsored micro loans (KUR) to small businesses , despite high demand.

Many credit applicants’ businesses failed to meet criteria set by banks to make sure they could pay back the loans, Bank Mandiri business banking senior vice president Tatang Tabroni told media.

“Before providing loans, we have to make sure their businesses have good prospects for the future, meaning they will have the ability to repay their debts,” he said over the telephone.

Tatang added that because of this requirement, Mandiri had not given loans to people wanting to start new businesses, but mostly to businesses that were already running.

According to the Cooperatives and Small and Medium Enterprises Ministry, in the first half of this year, Bank Mandiri had disbursed Rp 252.7 billion under micro credit loans (KUR) to 732 debtors. However, the government had asked Mandiri to disburse at least Rp 1.84 trillion worth of KUR by the end of this year.

The government is committed to developing the SME sector by allocating Rp 20 trillion from this year’s state budget to give SMEs easier access to capital.

As of July, 680,270 entrepreneurs had made use of Rp 6.5 trillion of the facility.

The government is disbursing the Rp 20 trillion worth of KUR loans through Bank Nasional Indonesia (BNI), Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Bukopin, Bank Tabungan Negara (BTN), rural banks (BPR) and Regional Development Banks (BPD).

BNI is expected to disburse Rp 3 trillion, Bank Mandiri Rp 2 trillion, BRI Rp 8 trillion, Bukopin Rp 750 billion and BTN Rp 750 billion. The remaining Rp 4.5 trillion is divided between rural banks and Regional Development Banks across Indonesia.

In 2009 the export value of the SME sector fell to US$1.23 million from $1.35 million previously.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand