Indonesia to Unleash Loan Funds as Micro Lending Rates Cut
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Indonesia wants to unleash 30 trillion rupiah ($2.3 billion) of new loans for small businesses and halve some bank micro lending rates to help revive an economy running at its slowest pace in five years.
The government has asked state-owned lenders to cut lending rates for so-called Kredit Usaha Rakyat, or financing given to small businesses that may not meet bank criteria, as part of the package, said Gatot Trihargo, a deputy at the State-Owned Enterprises Ministry, in an interview in Jakarta on Wednesday. Rates for such loans can be as high as 24 percent.