PRESIDENT Prabowo Subianto is said to be going to issue a Presidential Regulation (Perpres) to remove bank collection rights from business actors whose debts have been written off. This is seen as one way to strengthen bank credit distribution to business actors, both from small to large scale.
This was conveyed by the Chairman of the Advisory Council of the Indonesian Chamber of Commerce and Industry (Kadin), Hashim Djojohadikusumo in the Kadin Economic Dialogue at the Kadin Tower, Jakarta, Wednesday (23/10).
“Maybe next week, Pak Prabowo will press a Presidential Decree, whitening. It is being prepared by Pak Supratman, Minister of Law. Everything is in accordance with the law. Maybe next week, I hope next week he will sign the Presidential Decree on whitening,” he said.
Hashim said the decision was taken when Prabowo learned that around 6 million fishermen, farmers and micro and small businesses could not access bank credit. This is because the bank still has the right to collect even though the debt has been written off.
As a result, data on 6 million people was read as problematic in the Financial Services Authority (OJK) Financial Information Services System (SLIK). “There are debts from 20 years ago, debts from the 1998 monetary crisis. Debts from 2008. Debts from everywhere, 5-6 million farmers and fishermen. They are now having difficulty because they are no longer allowed to borrow from banks. Every time they enter SLIK at the OJK, it was immediately rejected,” explained Hashim.
“All these debts were written off a long time ago and have been replaced by bank insurance. But the bank’s collection rights have not been removed. So for this 6 million, they can’t get credit. Where are they going? They run to loan sharks and loan sharks,” he added.
On the same occasion, Chairman of the Indonesian Chamber of Commerce and Industry’s Business Council, Chairul Tanjung, said that one of the obstacles facing domestic industry to grow is the difficulty of getting access to capital from banks. According to him, this is not only faced by micro business actors, medium and large business actors also experience the same thing.
“To be honest, the regulations from the OJK restrict banks from providing credit to companies, whether small, medium or large, which do not capable in banking,” said the man who is familiarly known as CT.
Adjustments to the rules, said CT, can be made by taking into account domestic economic conditions. This is considered important, because high credit growth can also support the national economy. Therefore, making it easier to distribute credit also makes it easier to achieve high economic growth.
“So if Mr Prabowo wants 8% growth, that’s it growth banking credit may be above 20%-30%. If growthjust that single digitYes, it’s impossible. That’s one keyword economic growth,” explained CT.
Hashim and CT’s statement was sparked by a complaint submitted by the Deputy General Chairperson, Coordinator for Investment, Downstreaming and Environment at the Indonesian Chamber of Commerce and Industry, Bobby Gafur Umar. He stated that the bank’s requirements for providing capital to industry were quite burdensome.
This also makes business people think twice about expanding. “We feel there needs to be reform for funding, Sir. Indonesian banking is still very difficult. Never mind small companies like MSMEs, even medium ones are having a hard time,” said Bobby.
Bank credit interest for industry is currently set at around 11%-12%. Before credit is disbursed, banks still have to look at business prospects, at least within three years they must be profitable with a maximum loan term of five years.
“This won’t work. Build the factory, payback in 12 years. So there must be an extraordinary breakthrough for domestic funding,” concluded Bobby. (E-2)
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