Indonesia: BNI, Rural Banks Team up for Microloans

Mar 2016
Indonesia, March, 01 2016 - State-owned Lender Bank Negara Indonesia (BNI) signed an agreement on Monday with the Association of Rural Banks (Perbarindo) on credit linkage to support the government-backed microloan program.

Under the memorandum of understanding, Perbarindo’s members across the country will help BNI channel the subsidized loans, called People’s Business Credit (KUR), to eligible end users.BNI retail business director Sutanto said the lender considered rural banks as strategic partners in accelerating the disbursement of KUR loans to business owners across the country, especially those in the micro segment.

He said BNI’s partnership with Perbarindo on non-subsidized loans had been going for eight years, as the bank needed to channel loans to micro, small and medium enterprises amid a limited network.

“We channeled Rp 3.2 trillion of linkage loans as of last year, with disbursement through rural banks contributing 52 percent to the total amount,” Sutanto said in a press statement.

Last year, BNI’s total outstanding loans to the MSME segment stood at Rp 42.2 trillion. For KUR loans this year, BNI is targeting to disburse Rp 10 trillion (US$747.6 million) to Rp 11.5 trillion of a nationwide target of Rp 100 trillion. The target is three times higher than the Rp 3 trillion allocated by the bank last year, reflecting BNI’s optimism on growth in the SME segment.

Perbarindo chairman Joko Suyanto said at least 1,640 rural banks across the country were involved in the association and ready to channel KUR loans through the program.Financial Services Authority (OJK) deputy commissioner for banking supervision Heru Kristiana said the agency expected other banks to follow the example of BNI and Perbarindo.

Source : The Jakarta Post

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