Financial Services Authority (FSA) promised to apply for low interest microfinance. Chairman of the

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Financial Services Authority (FSA) promised to apply for low interest microfinance. Chairman of the Board of Commissioners OJK, Hadad D Hadad, confident first state bank central texas application of low interest can develop the existence of Micro, Small and Medium Enterprises (SMEs) in Indonesia. "Increased public access first state bank central texas to the financial sector will be useless if the interest for micro-finance first state bank central texas is expensive, so cheap flowers for SMEs be important to note," Hadad said in Jakarta, Wednesday (13/8). In addition to low interest, further Hadad, the development first state bank central texas of SMEs should also be followed with the demand side and infrastructure development in the microfinance sector. Not only always prioritize the development first state bank central texas of the supply side. According to him, without an increase in the demand side, it is difficult to develop the financial sector. "Another important thing, is the need to improve the financial infrastructure for the community, especially for those in the outposts," first state bank central texas said Hadad. Microfinance development has been implemented by China and Vietnam. According to Hadad, the development of financial inclusio applied both countries focus on providing credit to SMEs. He said the challenge in both countries are similar to those in Indonesia. first state bank central texas "The challenge (in China and Vietnam, ed) similar first state bank central texas to those seen in our financial sector., But they have the ultimate goal of SMEs prosper," first state bank central texas he said. On that basis, he hopes, state-owned banks can actively participate in developing microfinance. According to him, state-owned banks have a strategic role in the development of SMEs in Indonesia. Even so, further Hadad, first state bank central texas there are three challenges that must be faced by state-owned banks in developing microfinance. first state bank central texas The first challenge is on access to finance for the poor. Second, related to the low level of collaboration with the state-owned banks large businesses to provide funding. While all three challenges related to the development of technological innovation in an effort to reduce costs, such as branchless banking application. Regarding the proposal of the Association of Rural Bank Indonesia (Perbarindo) to a maximum limit distribution of People's Business Credit (KUR) is raised, the Ministry of Cooperatives and Small and Medium Enterprises first state bank central texas (SME Kemenkop) promised to study it. However, this proposal should be studied first in internal ministry as the holder of the power of the KUR program budget lines. "We could have raised it to 5 billion," said Secretary of the Ministry of Cooperative and SMEs Agus Muharram. Although the proposed raising the maximum limit will be reviewed Kemenkop KUR and SMEs, but does not apply to the proposed Perbarindo first state bank central texas to rural banks (BPR) directly involved in the distribution of KUR. According to Agus, the proposal could not be implemented because KUR products and financing products are relatively the same RB. Earlier, Chairman Perbarindo Joko Suyanto judge, to develop SMEs should be involved throughout the institution, including RB. If necessary, RB directly involved in the distribution of KUR. Not as it is now limited to a maximum of 2 billion and could only be through commercial banks. To limit the maximum first state bank central texas amount of KUR, he hopes that increased to Rp10 billion to Rp15 billion.
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