Bank Indonesia said the banking system is committed to providing this year new loans of 60.4 trillion rupiah to small- and medium-sized enterprises (SMEs) and micro enterprises.
In a statement, Bank Indonesia governor Burhanuddin Abdullah said the expansive strategy is based on last year's strong record and a plan to develop further such businesses.
The new credit growth reflects the confidence within the banking sector that the SME sector still presents vast lending opportunities," Abdullah said.
The realised SME credits in 2004 amounted to 72.1 trillion rupiah or almost double the initial forecast of 38.5 trillion, he added.
The Indonesian SME sector has proven to the most resilient, having survived the 1997-98 Asian financial crisis.
Source: AFX Asia
