Kadin Asks for Wider Access to Micro Loans

Tempo Interactive, Friday, 04 December, 2009 | 15:58 WIB

TEMPO Interactive, Jakarta:The Indonesian Chamber of Commerce and Industry (Kadin) is asking for wider access to the government’s micro loan program (KUR).

According to Sandiaga S. Uno, Kadin deputy chairman on micro, small and medium enterprises and cooperatives, to widen access, the creation of additional micro financing institutions is not needed because there is concern that more socialization would be required.

“But (we could) increase (the role of) five banks outside BRI,” he said He then proposed that BRI portion should be reduced.“At the most, 70% (of the funds) should be channeled by BRI and the other 30% by five other banks,” he said.

At the moment, 97% of KUR funding is channeled by BRI.

The five other banks, Mandiri Bank, Mandiri Syariah Bank, BNI, BTN and Bukopin, channeled only 3%.

According to Sandiaga, wider access to KUR is more important than interest rate problems.He revealed that micro, small and medium enterprises did not really pay attention to 16% credit interest (per year). “Because that is much better than interest paid by market merchants, which can reach 10% per week,” he said.

Besides wider access, Kadin hope that KUR problems, like debtor information system, could be solved. “So it would not be required for micro enterprises anymore,” he said.

The government has made KUR revitalization a priority working program in 100 days. The government would channel Rp20 trillion for KUR funds in 2010.

EKA UTAMI APRILIA