Indonesia eyeing more Islamic microfinancing for MSMEs, cooperatives, under national scheme
Photo: BANDUNG, INDONESIA - JANUARY 15, 2016: Unidentified man cooking in his small food stall at night in Bandung, Indonesia. The government's Kredit Usaha Rakyat (KUR) scheme is designed to help micro or small businesses like this access financing. Khairul Effendi / Shutterstock.com
The Indonesian government hopes Shariah-compliant microfinancing under its Kredit Usaha Rakyat (KUR) scheme will increase this year as more Islamic financial institutions join the programme, Iskandar Simorangkir, deputy minister for macroeconomic and financial coordination told Salaam Gateway.
Last year, Bank Rakyat Indonesia Syariah (BRI Syariah), the Islamic arm of majority state-owned Bank BRI, disbursed 500 billion Indonesian rupiah ($37.5 million) in Islamic microfinancing.
However, this amount was not accounted for separately in Bank BRI’s overall accounting, said Simorangkir.
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