Indonesia: Govt Offers Micro-loans with Daily Installment for Street Vendors

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Dec 2015
Indonesia, December, 07 2015 - The initiative to disburse micro-loans for street vendors is in line with the government's target to disburse Rp 30 trillion ($2.17 billion) worth of KUR before the end of 2015 and around Rp 100 trillion to Rp 120 trillion next year.

The Indonesian government offers micro-loans with a daily installment program for street vendors operating in a designated state-controlled area as part of the government's seventh policy package to prop up the economy, a minister said on Monday.

Ferry Mursyidan Baldan, the minister for land and spatial planning, said representatives of state-owned lenders will come directly to the vendors and offer them the loans under a special scheme.

"The lending limit will be different for each area, but the rate will be the same," he said.

Ferry said the loans will be offered under the micro-loans scheme, locally known as KUR, that offers an interest rate of 9 percent per year, with tenors of up to two years.

The initiative to disburse micro-loans for street vendors is in line with the government's target to disburse Rp 30 trillion ($2.17 billion) worth of KUR before the end of 2015 and around Rp 100 trillion to Rp 120 trillion next year.

The government also aims to help street vendors -- who generally are not operating licensed or even registered businesses -- avoid loan sharks by granting leasehold certificates for free.



 

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