Jakarta (ANTARA) - Credit provided by banks is meant to be utilized for productive purposes and not for purchasing consumptive goods, President Joko Widodo (Jokowi) has said.

“Do not buy to show off, flaunt. To be seen by the neighbors, (so they would comment), ‘Wow! How cool!’” the President remarked during the disbursal of 2023 people's credit and the launch of the digital agriculture card for subsidized fertilizers in North Aceh, Aceh, on Friday.

He said that if people use bank credit to buy consumptive goods, such as cars, just to show off to others, then they may not be able to repay the credit. Further, the things they bought with the credit could be seized by the bank as collateral.

"Just believe me. Six months after that, cannot repay the debt, and suddenly in six months, the car is no more," he added.

According to Widodo, credit is better spent on productive things. If people want to buy cars, it is advisable to buy vehicles that can hold cargo, such as pick-up trucks, and thereby, assist in their business.

On the occasion, the President also talked with one of the recipients of credit funding from PT Bank Syariah Indonesia (BSI) Zulhelmi who sells fertilizers.

Zulhelmi received Rp100 million (US$ 6,604) from the bank to expedite his business.

"I took one for four years, Sir. I pay about Rp2.3 million (US$152) per month," Zulhelmi informed.

The President said that for Aceh, BSI has allocated as much as Rp3 trillion (US$198.1 million) out of its Rp14 trillion (US$924.6 million) budget for the national credit program.

"After being portioned by the main director (of BSI), that Rp3 trillion (US$198.1 million) will trigger, improve, develop the economy in Aceh. I am very delighted. I asked those who received the credit, some got Rp100 million (US$ 6,604), some got Rp50 million (US$3,297) , some got Rp20 million (US$1,318), even got Rp500 million (US$32,900)," he said.

The head of state also advised people who had availed the credit to repay it on time.

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Translator: Indra A P, Mecca Yumna
Editor: Azis Kurmala
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