REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) urged banking industry to channel at least 20 percent of their loans to micro and small medium enterprises (MSME). Hence, BI offers two options to foreign banking branch office (KCBA) operating in Indonesia to implement the policy.
"Some foreign banks use bank linkage with BPR as the program has draw," he said on Thursday.
Second, KCBA can lend their money to non-mineral exporter, such as MSME in hadicraft and horticultural sectors. Zainal said, many MSME entrepreneurs had great potential to export their product but they still have problem to access to capital.
The policy of channeling 20 percent of loan to MSME is quite challenging for KCBA, since they usually focus on corporate and consumer loan. Therefore, BI will require kCBA to implement at least five percent at first year, then 10 percent the next year, until they reach 20 percent as required in 2018.
Chief Country Officer of Citibank Indonesia, Tigor Siahaan said that despite Citibank's loans growth rose to double digits in the first quarter this year, but it was still dominated by corporate loans. Citibank will increase corporate loans up to 90 percent in 2013.
According to data obtained by BI, MSME loans by Februari 2013 stands at 514.51 trillion IDR, consists of 504.81 trillion IDR from national banks and 9.7 trillion IDR from foreign banks.