Minister to focus on micro credit

The Jakarta Post, Jakarta | Sat, 11/21/2009 10:56 AM

State Minister for Cooperatives and Small and Medium Enterprises Syarifuddin Hasan said he would focus on the distribution of micro credits (KUR) to increase fund absorption next year.

"We will do our best to accelerate the distribution of Rp 10 trillion (US$ 1.06 billion) in KUR credits to small and medium-sized enterprises (SME) next year," the minister said in Makassar, South Sulawesi, on Saturday as quoted by Antara news agency.

He said that the main problems that had to be solved in the distribution of KUR credits included lack of publication of the program, high interest rates and tight requirements imposed by banks.

"We will eliminate the problems so that the distribution of the funds would not be hampered," the minister said.

His ministry would in the near future establish coordination with executing banks and involve private banks in the distribution of the credits, he said.

"We have also discussed the matter with Bank Indonesia to minimize the requirements that have increased the burden of business players," he said.