INDONESIA - KUR - FINANCE - First Lady Criticizes State Banks Over Failure to Provide Micro Loans

Jakarta:Indonesia's First Lady Kristiani Herawati Yudhoyono on Wednesday criticized state banks over its credit distribution policies, particularly in regard to micro, small, and medium enterprises (MSMEs). According to the First Lady, craftsmen and other small businessmen continued to complain about how difficult it remained to obtain microfinancing or micro loans from state banks. (source)


The government had, in fact, launched the microcredit scheme [KUR program] with interest subsidies to spur the economy. Unfortunately, the program was deemed ineffective because it never reached the right target. "Banks should be able to explain the credit requirements in a simple manner so that they [small businessmen] will not feel troubled," said Ani Yudhoyono in a speech at the inauguration of the Indonesian Craft Exhibition at the Jakarta Convention Center yesterday.

Ani Yudhoyono added that she received some of the complaints directly. "Some [businessmen] said that it’s difficult to obtain KUR and suggested that the program be dismissed."

"Banks must be transparent with regard to the requirements they ask from small businesspeople in order to get soft loans. If those asking for loans did not meet the requirements, banks must also explain to them."

Source : http://www.tempointeractive.com/hg/nasional/2011/08/04/brk,20110804-350121,uk.html  - Aug 4, 2011