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View all search resultsPeople's credit failing to reach rural poor: NU
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Nahdlatul Ulama (NU) general secretary Helmy Faishal Zaini (left), NU supervisory chairman Ma'ruf Amin, NU chairman Said Aqil Siroj, Bank Muamalat president director Endy Abdurrahman, ex-deputy governor of Bank Indonesia Anwar Nasution and Bank Muamalat corporate banking director Indra Sugiarto (right) gather after signing a memorandum of understanding between the Muslim organization and the country’s biggest Islamic bank aiming at channeling credit to people in remote areas in Indonesia. (JP/Anton Hermansyah)
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ndonesia's largest Muslim organization Nahdatul Ulama (NU), with more than 40 million members, has said the people’s business credit (KUR) scheme has failed to reach low-income borrowers because of high interest rates.
NU chairman Said Aqil Siroj said on Monday that banks were still channeling KUR to financially established businesses while neglecting vendors and small to medium grassroots businesses.
"The credit has yet to reach them, meaning KUR has failed to raise the living standards of low-income people," he said, adding that his observation was based on his frequent visits to NU members in rural areas.
In response to the situation, NU is offering help to the banks to distribute credit to rural communities in order to reduce their costs, Said reported. (dan)
