BANKING - Sharia financing to MSMEs approaching IDR25 trillion

JAKARTA: Bank Indonesia estimated the financing of Micro, Small and Medium Enterprises (MSMEs) by sharia banks may reach IDR25 trillion by the end of this year.

Mulya E Siregar, Director of Sharia Banking Directorate Bank Indonesia, said the financing of sharia banking to MSMEs until September 2010, has reached IDR24.19 trillion or around 54.32% of the total financing of sharia commercial banks (BUS) and sharia business units (UUS).


The financing, he continued, was distributed in form of working capital financing and investment financing.

“MSMEs business sector is diverse. One of its segment that being develop is franchise,” he said, today.

Based on Bisnis notation, the total financing of sharia banks up to September 2010 has reached IDR60 trillion. Mulya estimated the financing of sharia banks until the end of year may reach DR62 trillion.

BI recorded that the sharia banking services is getting broader and cover almost all provinces in Indonesia. As listed, there are 11 sharia banks, 23 sharia business units, and 146 of Bank Perkreditan Rakyat (BPR) sharia with a total of 1264 offices. (t06/wiw)

Source : http://www.bisnis.com/en/business/1id218337.html - Nov 3, 2010