ID :
108809
Fri, 02/26/2010 - 23:44
Auther :
Shortlink :
https://oananews.org//node/108809
The shortlink copeid
SMALL HOLDER`S CREDIT SCHEME BEST SOLUTION TO FACE ACFTA
Jakarta, Feb 26 (ANTARA) - Minister for Cooperatives and Small and Medium Enterprises (KUKM) Sjarifuddin Hasan said the small holder's credit (KUR) scheme was expected to be the best solution to problems related to the ASEAN-China Free Trade Area (ACFTA).
"We have great expectation that the KUR scheme will be able to help cooperatives and small scale businesses to face stiff competition in the free trade era," the minister said here on Friday.
He said Chinese products were expected to flood Indonesian markets soon as a result of the implementation of the ACFTA agreement.
The flooding of Chinese goods in Indonesia was predicted to create a negative impact on KUKM businesses in the country.
"Therefore, I hope that with the KUR scheme KUKM businesses will have easy capital access to overcome their weaknesses in the competition with the Chinese goods," Hasan said.
He said that the lack of access to capital had so far become the main factor for KUKM to advance their businesses.
With KUR scheme, the minister hoped that KUKM would increase their competitive edge and improve the quality of their human resources.
Besides, the minister said, KUR is one of the instruments which is most trusted by the government to reduce the country's poverty rate to 8-10 percent in 2014.
"I hope a fund of Rp20 trillion would be channeled annually for the KUR program in the coming five years," the minister added.
He said that he and other stakeholders had agreed to provide easy access for KUKM businesses to obtain KUR credits.
The minister said that micro credit borrowers of lower than Rp5 million would not be required to provide collateral.
Since January 2008 and up to January 2010, the government had channeled Rp17.542 trillion to 2.4 million recipients with an average credit amount of Rp7.24 million per person.***
"We have great expectation that the KUR scheme will be able to help cooperatives and small scale businesses to face stiff competition in the free trade era," the minister said here on Friday.
He said Chinese products were expected to flood Indonesian markets soon as a result of the implementation of the ACFTA agreement.
The flooding of Chinese goods in Indonesia was predicted to create a negative impact on KUKM businesses in the country.
"Therefore, I hope that with the KUR scheme KUKM businesses will have easy capital access to overcome their weaknesses in the competition with the Chinese goods," Hasan said.
He said that the lack of access to capital had so far become the main factor for KUKM to advance their businesses.
With KUR scheme, the minister hoped that KUKM would increase their competitive edge and improve the quality of their human resources.
Besides, the minister said, KUR is one of the instruments which is most trusted by the government to reduce the country's poverty rate to 8-10 percent in 2014.
"I hope a fund of Rp20 trillion would be channeled annually for the KUR program in the coming five years," the minister added.
He said that he and other stakeholders had agreed to provide easy access for KUKM businesses to obtain KUR credits.
The minister said that micro credit borrowers of lower than Rp5 million would not be required to provide collateral.
Since January 2008 and up to January 2010, the government had channeled Rp17.542 trillion to 2.4 million recipients with an average credit amount of Rp7.24 million per person.***
