The policy will be conducted on January 2013.Jakarta (ANTARA News) - Bank Indonesia (BI/the central bank) has asked all banks in Indonesia to distribute 20 percent of their credit to micro, small and medium enterprises (MSME).
BI spokesman Diffy A Johansyah told a press briefing at the BI building in Jakarta on Tuesday, that the policy will be conducted on January 2013.
"Basically this is not a new policy but something to complement the old one based on Law No.20/2008 on MSME," he said.
The distribution of the 20 percent of total productive credit to MSME, Johansyah noted, will be generally implemented by the domestic and foreign banks.
Regarding the different banks` capacities to distribute the MSME credit, especially foreign banks, BI has considered some policies to ease the burdens.
"We realize that some banks, especially foreign banks, are not used to distributing credit to micro and small business. That is why, we will assess the banks periodically," he said.
The credit distribution will be carried out gradually for a five year distribution period with 5 percent of the credit will be carried out in the first to second year, 10 percent in the third year, 15 percent in the fourth year, and 20 percent in the fifth year.
Besides, BI will provide technical and supervision assistance as well as research and training for banks and MSME businessman and strengthen ties between the related stakeholders like Cooperatives, Small and Medium Enterprises Ministry and The Deposit Insurance Agency (LPS).(*)
Editor: Heru Purwanto
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