Thursday, November 25, 2010

FINANCE - KUR - BPR Wants to Extend Loans

TEMPO Interactive, Jakarta:The Indonesian Association of People's Credit Banks (Perbarindo) has called on the government to involve them in extending the People’s Business Credit (KUR) program. "We hope that the People’s Credit Bank (BPR) can also be involved directly,” Perbarindo Chairman Joko Suyanto said at a press conference following a meeting with Vice President Boediono yesterday.
So far, Joko said, BPR is only involved indirectly because the government only cooperates with public banks. BPR does not have the freedom, yet it can be the front liner. Geographically, credit banks are closer to micro, small, and medium-scale businesses.

According to Joko, Governoment Regulation no. 39/2007 only allows regional governments to place state/regional cash at the central/public banks. This is considered to undermine BPR/Syariah BPR’s role in managing economic potential in the region.

Vice Presidential spokesman Yopie Hidayat said Vice President Boediono did not specifically respond to Perbarindo’s request. It is the authority of Bank Indonesia to manage it. Boediono only reminded banks, including BPR, to develop the institution’s administration, Yopie said.

Source : http://www.tempointeractive.com/hg/nasional/2010/11/24/brk,20101124-294168,uk.html - Nov 24, 2010

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