Bank International Indonesia (BII) will disburse loans totalling Rp100 billion (US$11.8 million) to bolster activities in the real sector and small- and medium-sized enterprises (SMEs) in Central Java province, according to a local official.
"The credit will be disbursed through the Smallholder Credit Bank (BPR) and the Subdistrict Credit Agency (BKK)," Mardiyanto, governor of the Central Java province, said after signing a memorandum of understanding (MOU) with BII president director Sigit Pramono.
He added that the MOU would be used as a basis for contracts of cooperation or a project administration memorandum between BII and Central Java's BPR and BKK.
The governor said the heads of municpalities, mayors and the local legislative assembly had a significant role to play in the disbursement of the BII credits. "They can act as guarantors by using the local budget as collateral," he added.
