Efforts intensify to develop micro and small businesses

With the help of government funds, three lending collateral providers for micro and SMEs — two of which are state owned, will be able to guarantee up to Rp 14.5 trillion in bank loans for micro, small and medium enterprises over the next three years.

Assuming an average credit amount of Rp 25 million, the figure could provide financing access to over half a million SMEs and help support a workforce of 1.7 million people, said Suharsono, president director of PT Asuransi Kredit Indonesia (Askrindo), one of the three fund providers. The other two providers are Perum Sarana Pembangunan Usaha (SPU) and PT Penjamin Kredit Pengusaha Indonesia (PKPI).

Figures from a June 2006 Bank Indonesia report show there were 48 million MSME units registered in Indonesia, with only around 30 percent securing access to commercial financing.
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