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Ahok launches micro-credit institution for small-time entrepreneurs
Amid criticism for his harsh statements against poor people, Jakarta Governor Basuki âAhokâ Tjahaja Purnama on Friday launched PT Jaminan Kredit Daerah (PT Jamkrida) DKI, a non-bank financial institution, to disburse loans for micro, small and medium enterprises (UMKM) in the city
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mid criticism for his harsh statements against poor people, Jakarta Governor Basuki 'Ahok' Tjahaja Purnama on Friday launched PT Jaminan Kredit Daerah (PT Jamkrida) DKI, a non-bank financial institution, to disburse loans for micro, small and medium enterprises (UMKM) in the city.
'My hope is that PT Jamkrida DKI will help UMKM entrepreneurs. There are many of them, who have no access to loans,' said Ahok, when launching the company at City Hall as quoted by kompas.com
According to Ahok, the Jakarta city administration established the institution because the Trade, Cooperatives, Micro, Small and Medium Enterprises Agency could not directly distribute Rp 400 billion (US$ 28.56 million) of the city administration fund to small and micro entrepreneurs because of the absence of legal basis.
'Now we can give loans of Rp 5 million as long as there is collateral. Without collateral, I could not and I could be jailed. Now we have PT Jamkrida DKI, we can implement the program,' Ahok added.
PT Jamkrida DKI was established based on City Bylaw No. 13/2013 on the establishment of City-owned enterprises for regional credit loans. The Financial Service Authority (OJK) has issued a permit for PT Jamkrida.
The city administration owns 95 percent of the shares, while another 5 percent is owned by city-owned market operator PD Pasar Jaya.
Currently there are 10 similar institutions owned by local government across the country. (bbn)
