Ministry of Finance of Republic of Indonesia : President Directing Social Assistance to Productive Enterprises

Jakarta, 13/01/2016 MoF - President Joko Widodo explained that accuracy and prudence is needed in providing loan amid global uncertainty. This is intended to reduce Non Performing Loan (NPL). According to the President, the Indonesia's NPL figures of 3.18 percent is considered good. However, he reminded, the attitude of prudence should not become obstacle to provide loan for small businesses.

'But do not be afraid to give loan,' he said as quoted from the Setkab site in the annual meeting of the Financial Industry Performers 2017 at the State Palace on Friday (13/1).
In addition, the President also stressed the importance of cooperation between the Regional Development Bank (BPD) and asked the governors to provide interest subsidies from the budget to small businesses.
'Do not give unproductive social assistance, instead, give it to the communities. So they will be productive,' he said.

On the same occasion, the President invited the entire financial services industry, especially banks to look at credit growth in Indonesia. He further asked them to provide credit productively to micro and small businesses, fishermen, and farmers.

'Give the loan to people in need,' he said. (ab/rsa)