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View all search resultsLenders struggle to collect installments from migrant workers
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Indonesians form a line to vote during the 2014 elections in Hong Kong. (Setkab.go.id/-)
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tate-owned banks are reportedly experiencing difficulties in collecting installments for the government’s microcredit program (KUR) from Indonesian migrant workers.
Bank Mandiri president director Kartika Wirjoatmodjo said on Wednesday that according to the program’s terms of payment, installments were to be deducted from workers’ salaries, with the permission of their employers.
“As long as employers allow us to deduct payment from salaries, we can distribute the KUR. We were trying it in Hong Kong, but most employers have not allowed the deductions from bank accounts," he said in Jakarta on Wednesday.
According to the data from the Office of the Coordinating Economic Minister, the government allocated Rp 120 trillion (US$8.64 billion) for its KUR program in 2018, a 12.57 percent increase from last year’s figure.
Only Rp 329.69 billion was disbursed to migrant workers last year. As of February, Rp 41.5 billion had been disbursed this year.
Bank Negara Indonesia (BNI) president director Achmad Baiquni said each migrant worker could get up to Rp 25 million in loans from KUR, the disbursement of which did not require collateral.
"We have to work with foreign agents to disburse KUR. The realization is far behind the allocated budget. We face issues in finding qualified recipients," he said. (bbn)
