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Govt mulls special banks to finance industry
The government is deliberating establishing a financing institution that channels special credits to local firms in a bid to spur industrial growth in the country
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hegovernment is deliberating establishing a financing institution thatchannels special credits to local firms in a bid to spur industrialgrowth in the country.
Industry Ministry secretary-general Ansari Bukhari said on Tuesday in Jakarta that the banks would be necessary to accelerate the growth of domestic industry.
'This is one of the incentives that the government can provide for the industry. Presently, our industry cannot expand by more than 10 percent due to the absence of such special banks catering to the needs of the industry,' he said.
The proposal for the banks to finance industry needs has been designated in the industry bill currently under deliberation at the House of Representatives.
Indonesia's industry has begun to recover in past years after a collapse following a financial crisis at the end of the 1990s, going up beyond 6 percent in the first half of this year.
Between 1990 and 1996 before the crisis, the domestic manufacturing industry enjoyed its heyday, expanding by 12 percent each year and contributing one-third of the country's gross domestic product (GDP), partly supported by state-owned Bank Pembangunan Indonesia (Bapindo).
