Makassar, S Sulawesi (ANTARA Sulsel) - Bank Indonesia has denied suggestion that the government would abolish the program of small business credit facility (KUR).
"There is no plan to scrap it, but it would be revised to make it perfect," deputy chief of representative of Bank Indonesia for South Sulawesi Causa Iman Karana said here on Tuesday.
Revision is needed to prevent a repeat of problems faced so far such as the red tape concerning requirements, Causa said.
The credit applicants had to deal with complicated procedure as the fund is to be provided by bank but the government guarantees against any risk, he said.
The guarantee is given through state credit insurance company PT. Askrindo and Perum Jamkrindo.
"The problem is that the process of reimbursement by the insurance bodies took too long time.
"This is the problem being discussed between the government, banks and the insurance agencies to simplify the procedure," he said.
N. Ikawidjaja, a commissioner of Bank Sulsel, which is owned by the regional administration also said that the government needs to review the KUR procedure.
Ikawidjaja said there have been cases of misuse of the credit facility .
A political party used its political power to force a regional development bank to provide KUR for certain small firms but most of the fund was used for political purpose, that resulted in non performing credit, he cited without giving names.
"Problem of this kind needs to be put to an end, that KUR could be effective to contribute to economic development," he said.
Penerjemah : Fardah Assegaf
"There is no plan to scrap it, but it would be revised to make it perfect," deputy chief of representative of Bank Indonesia for South Sulawesi Causa Iman Karana said here on Tuesday.
Revision is needed to prevent a repeat of problems faced so far such as the red tape concerning requirements, Causa said.
The credit applicants had to deal with complicated procedure as the fund is to be provided by bank but the government guarantees against any risk, he said.
The guarantee is given through state credit insurance company PT. Askrindo and Perum Jamkrindo.
"The problem is that the process of reimbursement by the insurance bodies took too long time.
"This is the problem being discussed between the government, banks and the insurance agencies to simplify the procedure," he said.
N. Ikawidjaja, a commissioner of Bank Sulsel, which is owned by the regional administration also said that the government needs to review the KUR procedure.
Ikawidjaja said there have been cases of misuse of the credit facility .
A political party used its political power to force a regional development bank to provide KUR for certain small firms but most of the fund was used for political purpose, that resulted in non performing credit, he cited without giving names.
"Problem of this kind needs to be put to an end, that KUR could be effective to contribute to economic development," he said.
Penerjemah : Fardah Assegaf