IFC, BTPN INCREASING CREDIT CAPACITY FOR SMALL BUSINESSES

Jakarta, Oct 9 (ANTARA) - World Bank's subsidiary IFC and the National Pensioners' Savings Bank (BTPN) have established cooperation providing credits for micro and small scale businesses, BTPN director Jerry Ng said.

"IFC is allocating US$70 million and we serve as the distributor of the credit in the rupiah," Jerrry Ng said here on Friday when explaining the cooperation between IFC and BTPN.

He said that not all of the funds from IFC would be channeled in the form of credits. "Of the US$70 million, some 54.1 million dollars will be distributed in the form of credits for micro and small-scale businesses while the remaining 15.9 million dollars will be converted into shares," Jerry said.

Jerry said that BTPN had provided credits for micro and small businesses since November 2008. It has now 70,000 credit customers, most of which are small traders and owners of traditional kiosks.

He said that in its efforts to provide services for its clients BTPN was planning to set up 550 outlets in 2009, in addition to its 800 offices in different parts of Indonesia.

IFC Country Manager Adam Sack said meanwhile at present only 45 percent of the micro and small business market shares had already gained bank access in the country so that actually more than US$70 million is needed.

Adam said that the BTPN experience in channeling credits for micro and small entrepreneurs became the basis for TFC to place its funds in the bank, and if the program was successful IFC would continue the cooperation.