Indonesian SMEs Resorting to Micro Credits

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Jul 2017
Indonesia, July, 20 2017 - More micro, small and medium manufacturers are taking loans through the microcredit program (KUR) in Indonesia, according to a news item of Jakarta Post.

Traders and service businesses are dominating the micro credit receiving ends. 

More than 30 per cent of micro, small and medium producers have taken out KUR loans in the first half the current calendar year compared to 24 per cent in 2016.

The government has promised the producers that it will allocate 40 per cent of the total loans as micro credit this year.

Indonesian government has allocated Rp 110 trillion (US$8.2 billion) for the KUR program this year and is targeting more producers, like farmers and small, micro and medium manufacturers to benefit from the program and to help them raise productivity. 

The loan is offered at a 9 per cent fixed interest rate and is made available through all state banks, while the government has also partnered with several private banks to disburse the loan.



 

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