TEMPO.CO. Jakarta -Citibank Indonesia acknowledges that it is still difficult to reach the target rate of loans for micro, small and medium-sized enterprises (MSME), for which the regulator of the Indonesian Bank came this year by 20 percent.
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General Manager of Citibank NA Indonesia Batara Sianturi in Jakarta on Thursday, detailing until the third quarter of 2018 Or at the end of September 2018, Part of MSME loans from the total number of loans directed by new companies was 8.9 percent or significantly from 20 percent . "There are indeed restrictions on the granting of loans in the sector," said Batara.
In fact, the general increase in bank loans in the center of New York, the United States reached 22 percent (year to year / year) or Rp. 48.5 trillion USD. The Citibank loan distribution pillars are institutional credit services or institutional banking in the financial, mining and manufacturing sectors.
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"It is rather difficult 20 percent, and our comparison of loans is growing in total, which is growing by 22 percent, so the ratio (UMKM) is decreasing," he said.
Batara does not deny that the ratio of non-performing loans or non-performing loans in MSME loans is still high at 4.88 percent. This number slightly increased compared to the end of December 2017, which amounted to 4.71 per cent.
Since 2015, the Bank of Indonesia has implemented the regulation on the MSME credit ratio so that banks can support the development of MSME. The ordinance is set out in PBI No. 17/12 / PBI / 2015, which among others regulates banks must be able to transfer MSME loans to a minimum of 20 percent of their total loan portfolio in 2018.
BI encourages foreign banks to help in granting MSME loans with a link system or a credit network with domestic banks.