DENPASAR: The municipality of Denpasar has launched a loan scheme requiring no collateral to help residents set up businesses as part of the administration's economic program for small-scale entrepreneurs.
I Made Erwin Suryadarma, head of Denpasar's public relations office, explained the municipality had allocated Rp 14 billion (US$1.24 million) to be disbursed to residents who qualify, at loan levels of up to Rp 50 million per person.
Suryadarma said the loan program was made possible through the cooperation of the city administration and the Regional Development Bank (BPD) of Bali, which has set aside Rp 9 billion for the program. The remaining Rp 5 billion will be provided by the Denpasar administration.
He said the loan scheme is expected to provide capital for small-scale businesses to boost their efforts to compete in the tight business sector during the current financial crisis. - JP