Govt launches micro credit for migrant workers

President Susilo Bambang Yudhoyono launched in Surabaya on Wednesday a micro credit program to help Indonesian migrant workers finance their departure overseas and secure decent employment.

Going under the name of KUR for Indonesian migrant workers, the program consists of two schemes: one with a maximum loan of Rp 20 million (approximately US$2,220) and interest of 22 percent per year, and another with a loan above Rp 20 million and interest of 14 percent per year.

State-owned banks BRI, BNI and Bank Mandiri are ready to disburse the loans.

A number of other banks, including those based in the regions, have stated an interest in joining the scheme.

KUR was launched several years ago, but was exclusively aimed at supporting the growth of small and medium enterprises.

Kompas.com reported that the loans are expected to help Indonesian migrant workers arrange their documents, have medical checkups, receive training and earn competency certificates, among other things.