Coordinating Minister for People's Welfare Alwi Shihab said the government would optimise the use of part of the profits of state-owned firms (BUMN) to assist small-and medium-sized enterprises (SMEs) because financial institutions and banks had yet to give SMEs access to their capital resources.
"To eradicate poverty and provide cheap credits to SMEs and cooperatives, we will try to raise the necessary funds with the help of national banks and state-owned firms," the minister said after attending the conclusion of a business training held here on Wednesday.
He said his office was still consulting related ministers on how to use part of the profits of BUMNs for the purpose. The funds would be channelled to SMEs at lower-than-normal interest rates and further details of the program were now being studied.
"I have proposed that the credits be extended to SMEs without collateral and purely on the basis of trust and honesty," Alwi added.
