The Asian Development Bank (ADB) agreed to extend US$85m in export credits to Indonesian small- and medium-size enterprises (SMEs) on 17 December last year. The credits will be distributed among the SMEs through six banks, namely BNI'46, BRI, Bukopin, Danamon, Mandiri, and Bank Niaga.
The long-term project would cost US$113m of which 25 per cent would originate from participating banks and exporters applying for the credits.
ADB’s expert for the social sector, Lisa Kulp, said Indonesian SMEs had shown great endurance during the economic crisis and would grow rapidly if they received financial support such as ADB credits.
The Industry and Trade Ministry said that the credits were designed to create job opportunities for unskilled and semi-skilled workers in the long run. Indonesia, with a population of more than 210 million, has around 2.5 million new job seekers every year.