MICROCAPITAL BRIEF: Central Bank of Indonesia Predicts Increase in Microcredit for Small and Medium-sized Enterprises (SMEs) in North Sumatra

Bank Indonesia (BI), the central bank of Indonesia, has predicted that the supply of microcredit to low and medium-income enterprises will increase this year. According to Gatot Sugiono, a BI representative from Medan, the capital of North Sumatara, the supply of microcredit could increase to above 50 percent of total bank credits in North Sumatra. The increase would suggest greater access to credit among low-income enterprises. Mr. Sugiono recently estimated the present supply of microcredit at IDR 68.3 trillion (USD 7.2 billion). [1]

A study by the central bank concluded that micro businesses have been most resistant to the financial crises that occurred last year. “The potential for micro businesses in North Sumatra is still quite good,” said Mr. Sugiono.

By: Jay Kumar, Research Assistant

Additional Resource:

1.) Source article: http://www.tempointeractive.com/hg/nasional/2009/12/29/brk,20091229-216194,uk.html
2.) MicroCapital Universe Bank Indonesia: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ban…
3.) Bank Indonesia Official Website: http://www.bi.go.id/web/en

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