The Indonesian banking sector channelled some 30.7 trillion rupiah (US$3.3bn) in fresh loans to small- and medium-sized enterprises (SMEs) last year, exceeding the initial target of 30 trillion rupiah.
"The credit realisation accounted for some 43 per cent of the total new loans extended by banks last year, which amounted to 79. 4 trillion rupiah," Bank Indonesia Governor, Sjahril Sabirin, was quoted as saying.
Compared with the year before, the loans for SMEs grew by 35.1 per cent, outpacing the 15 per cent growth in overall bank lending.
Early last year, the central bank and the Poverty Eradication Committee (KPK), headed by the coordinating minister for people's welfare, signed a memorandum of understanding (MoU), requiring banks to channel 30 trillion rupiah of their funds to SMEs. The MoU is in effect for three years and can be extended thereafter.
