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Jakarta Post

BI wants banks to disburse 20% of loans to MSMEs

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, January 7, 2019   /   12:55 pm
BI wants banks to disburse 20% of loans to MSMEs A pedestrian passes by Bank Indonesia (BI) headquarters in Central Jakarta in this file photograph. (JP/Wienda Parwitasari)

Bank Indonesia (BI) is seeking a commitment from banks to disburse at least 20 percent of their total credit to micro, small and medium enterprises (MSMEs).

BI deputy governor Erwin Rijanto conceded that not all banks had fulfilled the requirement as stipulated by Bank Indonesia Regulation No: 17/12/PBI/2015, though most have been cooperative.

Erwin said BI was considering expanding the list of beneficiaries of the 20 percent quota to beyond MSMEs.

“One of the alternatives is to distribute [the credit] not only to MSMEs, but also to other prioritized sectors like [manufacturers of] export-oriented products,” Erwin said as quoted by kontan.com.

However, Erwin declined to explain the details of the expansion plan but said BI wanted to encourage banks to provide more financial facilities to prioritized sectors and boost economic growth.

PT Bank Mayapada Internasional president director Haryono Tjahjarijadi welcomed the idea, saying that the bank was ready to support the planned BI policy.

“However, we need time to prepare for the change in policy,” he said, adding Mayapada was considering disbursing more credit to the trading industry, which it had been dealing with.

In the first 11 months of 2018, banks distributed Rp 956.9 trillion (US$67.8 billion) or 20.25 percent of the total credit distributed. One of the banks that distributed 20 percent of its total credit is state-owner lender PT Bank Rakyat Indonesia (BRI). (bbn)