Indonesia: SME Loan Grows by 29 Percent

• Apr 04, 2017

TEMPO.CO, Jakarta – Latest statistics by Bank Indonesia shows micro, small and medium-sized enterprises (SMEs) loan in February 2017 grew by 29.8 percent year-on-year (yoy) to Rp946.3 trillion compared to January 2017 at 8.5 percent to Rp780.2 trillion.

However, microlending slipped by 4.3 percent to Rp176.7 trillion compared to the previous month at 9.3 percent to Rp179.5 percent.

State-owned lender PT Bank Rakyat Indonesia (BRI) Tbk SME director Mohammad Irfan said that SME lending growth was greater than that of micro enterprises due to the company’s efforts.

“We are getting better at fostering the SMEs and economy; as a result, micro and small-sized business owners made the grade leading to an increase in loans,” he told Bisnis Indonesia on Monday, April 3, 2017.

According to him, microloan growth is closely linked to the people’s business loan (KUR) program which is mostly distributed to micro-enterprises. BRI has realized Rp100 trillion in KUR microlending since its re-launch in mid-August 2015.

He added that microloan last year grew by 18 percent or higher compared that of 2015 at 15 percent. BISNIS

Source: https://en.tempo.co/read/news/2017/04/04/056862439/SME-Loan-Grows-by-29-Percent