ID :
24857
Thu, 10/16/2008 - 15:28
Auther :
Shortlink :
http://m.oananews.org//node/24857
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GOVT TO ACHIEVE SMAL-HOLDER'S CREDIT EXTENSION TARGET: ECONOMIST
Jakarta, Oct 16 (ANTARA) - The government will be able to achieve its target to provide Rp14 trillion in smallholder's business credits (KURs) to small businesses in 2008, economist Dr Darwin Zahedi Saleh of the University of Indonesia said.
"Until July, the provision of KUR credits has reached Rp9.8 trillion, or about 64 percent of the government's target of Rp14 trillion," he said on Wednesday.
He said if the average distribution per annum was taken into account, the KUR program would have only reached 48 percent in July.
"So, seen from the target aspect, the achievement of the KUR distribution until the end of the third quarter of 2008 has been very good," he said.
However, Saleh said the government still needed to improve the allocation of the credits in order to ensure their effectiveness, for example, the allocation was set at an amount lower than Rp5 million for each recipient.
He said complaints from the recipients were still heard such as difficulties they were facing when they applied for KUR credits besides the need for recipients to provide collateral.
Previously, Coordinating Minister for People's Welfare Aburizal Bakrie predicted that the implementation of the KUR program was unlikely to achieve the target of Rp14 trillion. He said that it was estimated that only about Rp12 trillion of the target could be achieved.
"Until July, the provision of KUR credits has reached Rp9.8 trillion, or about 64 percent of the government's target of Rp14 trillion," he said on Wednesday.
He said if the average distribution per annum was taken into account, the KUR program would have only reached 48 percent in July.
"So, seen from the target aspect, the achievement of the KUR distribution until the end of the third quarter of 2008 has been very good," he said.
However, Saleh said the government still needed to improve the allocation of the credits in order to ensure their effectiveness, for example, the allocation was set at an amount lower than Rp5 million for each recipient.
He said complaints from the recipients were still heard such as difficulties they were facing when they applied for KUR credits besides the need for recipients to provide collateral.
Previously, Coordinating Minister for People's Welfare Aburizal Bakrie predicted that the implementation of the KUR program was unlikely to achieve the target of Rp14 trillion. He said that it was estimated that only about Rp12 trillion of the target could be achieved.
