Improvement of Micro-credits Channeling

Tempo Interactive, Tuesday, 29 December, 2009 | 15:37 WIB

TEMPO Interactive, Medan:The central bank, Bank Indonesia (BI), has predicted that credit channeling for small- and medium-sized enterprises (SMEs) in North Sumatra this year could reach above 50 percent following improvements in this area’s economic development.

Up until October, micro credit channeling reached 49 percent of bank total credits of Rp68.29 trillion.

“We are optimistic because micro business potential here is quite large,” said BI Medan branch Head Gatot Sugiono.

According to Gatot, up until last October, micro-credit channeling amounted to Rp3.41 trillion, an increase compared to September, which amounted to Rp33.07 trillion.

The credit development is deemed positive because it occurs in the midst of credit channeling general decreases all October.

To increase micro-credits channeling, BI will try to push the banking industry to increase their credit portion for SMEs.

Moreover, this sector has proved to be more resistant to the financial crisis that occurred since the end of last year. “The potential for micro businesses in North Sumatra is still quite good,” he said.

ANT | FAMEGA