City to Run Banking System to Help UKM
Reported by Erna Martiyanti | Translated by Arief Rahman
Jakarta Provincial Government is going to support the micro small businesses (UKM) through capital aid assistance. The aid will be disbursed through banks where city administration kept its money. Such a thing is conducted after the 2014 City Budget (APBD) of Jakarta Cooperatives, Micro, Small and Medium Scale Enterprises and Trade (KUMKMP) Department as much as Rp 600 billion is not absorbed.
We have budget nearly Rp 600 billion in KUMKMP Department and confuse how to spend it because there are so many disorders. That budget is actually for business capital aid
Jakarta Governor Basuki ‘Ahok’ Tjahaja Purnama explained that one of the reasons why the capital aid cannot be disbursed is because Jakarta Provincial Government is having difficulties in getting the database of UKM entrepreneurs in Jakarta. Besides that, often times the capital borrowers were disobedient in returning the loans. Thus, the budget becomes static and cannot be used for other entrepreneurs.
“We have budget nearly Rp 600 billion in KUMKMP Department and confuse how to spend it because there are so many disorders. That budget is actually for business capital aid,” he stated, Tuesday (12/9).
DPRD Targeting the 2015 APBD Discussion Finished Before December 30To prevent similar thing from happening again, Ahok continued, in the future Jakarta Provincial Government will cooperate with some banks in terms of fund disbursement as well as loan collection. Moreover, feasibility analysis will also be applied to capital aid recipient candidates.
“The point is that (before) the UKM entrepreneurs get capital aid through banking transaction, they will be analyzed first by the bank, whether they worthy or not (to be given the aid). I wish this system could run first in Jakarta,” he uttered.
Ahok also disclosed that Jakarta Provincial Government will save up to Rp 1 trillion in bank to help the entrepreneurs in the capital city.
“Any bank is happy if we put our money in them. Let the system run first, then carry out (the program),” he said.
