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AKARTA: The United States Agency for International Development (USAID) and Standard Chartered Bank on Thursday announced a five-year US$19.2 million loan agreement for small and medium enterprises (SMEs).

“With this joint effort, a public and private sector collaboration, we will succeed in supporting Indonesia’s entrepreneurs, promoting growth and creating jobs and opportunities for all,” US Ambassador to Indonesia Scot Marciel said at the Standard Chartered tower in Jakarta.

Micha Tampubolon, general manager for SME banking at Standard Chartered Bank Indonesia, told reporters the collaboration will help entrepreneurs with revenue below Rp 5 billion and with not more than 200 employers in Jakarta, Medan, Surabaya, Semarang and Bandung.

“We see the non-performing loan [NPLs] for SME loans at below 1 percent this year, and expect the collaboration with USAID to raise our proportion of loans for SMEs to 15 percent of the total loans, with the bulk of the portfolio mainly designated to corporates, and wealth management,” Micha added. — JP