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Bakrie Group injects IDR1 trillion into micro business

JAKARTA: Bakrie Group injected IDR1 trillion to support expansion of micro-business sector through the establishment of Bakrie Micro Finance (BMF) Indonesia.BMF President Director B. Irawan Massie said that at initial stage, Bakrie Group will put in

JAKARTA: Bakrie Group injected IDR1 trillion to support expansion of micro-business sector through the establishment of Bakrie Micro Finance (BMF) Indonesia.BMF President Director B. Irawan Massie said that at initial stage, Bakrie Group will put in IDR100 billion for infrastructure development and credit disbursement to 100,000 customers to meet the demand in 2010 and 2011.He revealed that the annual needs reached IDR100 billion, so the total could be IDR500 billion. Still, he hopes to obtain larger fund. The BMF model totally adopts Garmen Banks concept created by the 2006 Nobel-winner Muhammad Yunus from Bangladesh. The financing is specially designed for businesswomen with at maximum loan of IDR1 million.Skema pembiayaan itu berbasis bagi hasil dengan maksimum yield 25% per tahun dengan sistem dana bergulir. Kredit tanpa jaminan itu akan dikenakan sistem tanggung renteng kepada kelompoknya, jika salah satu debitur gagal bayar.The financing scheme is based on profit sharing at maximum yield of 25% per year with revolving fund system. Then, the unsecured loan will be subjected to a joint responsibility of the group in anticipation of credit default.(T01/NOM)

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