Rp46 billion in Financial Aid for Small Entrepreneurs Disbursed

Tempo Interactive, Monday, 28 December, 2009 | 17:23 WIB

TEMPO Interactive, Jakarta:The Jakarta Government disbursed Rp46.7 billion in financial aid for micro-scale businesses. “The program is expected to be an economic foundation for Jakarta,” said Jakarta Governor Fauzi Bowo yesterday.

Fauzi explained that the funds came from the local government, not from donations. The people are asked to follow the regulation agreed to.”The funds will not bring any added value if not properly and honestly managed, “he said.

For now, Fauzi said, only 88 cooperatives could channel the funds. The number of cooperatives will be added step by step until it reaches 267 cooperatives starting next year. “So that every district has a source to manage micro funds,” he said.

Fauzi explained that district level channeling was chosen because cooperative members understand more the condition of their residents. “We will also provide training to cooperative administrators. They will be accompanied by experts,” he said.

Head of Cooperatives, Small- and Medium-Sized Businesses Ade Soeharsono added that the persons eligible for the funds are those in non-formal sectors who don’t have business permits.” Like meat ball sellers, small store owners, barbers and other micro business owners,” he said.

They can ask for loans after joining cooperatives in their district. Every application will then be selected by cooperatives administrators based on feasibility analysis.“The loan limit is Rp5 million,” said Ade.

The fund must be returned to the government in form of dividends in two year time.

RIKY FERDIANTO