West Java allocates Rp 200 billion for small businesses

BANDUNG, West Java: The provincial administration has set aside Rp 200 billion (US$22.4 million) to assist micro-, small- and medium-scale entrepreneurs (UMKM) in 2010, says a top official.

"We hope the funds, which are allocated from the provincial budget, can be used to help small businesses," Vice Governor Dede Yusuf said at the opening of an entrepreneurs' workshop in Bandung on Tuesday.

Dede said that capital, which is typically obtained from banks, remained the main obstacle to the growth of businesses and cooperatives due to the banking sector's caution.

Half of the state funds - Rp 100 billion - will be used as collateral for small scale entrepreneurs and deposited at the Provincial Credit Gaurantor's Agency (BPKD), he added. "A person who applies for a Rp 10 million loan should deposit Rp 3 million as collateral," he said. - JP