Credit for Cow Slaughterhouse Business in Bali is Rising

Banking in Bali has allocated credit amounting to 18,5 billion rupiahs to 99 businessmen in cow slaughterhouse commodities for the last three months. “This means a raise of 64% from the outstanding banking credit in Bali to the businessmen from the cow slaughterhouse business”, said the Head of Bank Indonesia Bali during the Coordinating Meeting between Banking, Small and Micro Scale Business Enterprises (UMKM) in Cow Slaughterhouse and the Government Agency for Animal Farming for Bali on April 4, 2006 in Denpasar, Bali. Based on the data from Bank Indonesia Office of Denpasar, the credit for businessmen in cow slaughterhouse has shown an upward trend, from 28,8 billion rupiahs in December 2005 to 47,3 billion rupiahs in March 2006. The rising trend of credit to the businessmen is given by 6 commercial banks having business operation in Bali.

The meeting which was held as a follow-up to the Workshop for Business Prospects and Funding Potential by Banking in Denpasar on December 8, 2005, was part of the series of activities conducted by Bank Indonesia in order to improve banking intermediation function. Moreover, it is hoped that the meeting will support the improvement of leading commodities in the regional areas.

As in other regions, the main problem in credit channeling from banking to UMKM is the general perception held by banking of the high risk for credit chanelling to UMKM. Apart from that, other problems are the minimum information regarding the UMKMs that deserve to be given credit and the minimum knowledge on the condition and prospect of the leading sectors. “It is hoped that this meeting will give access for banking to more comprehensive and detailed information concerning the prospect and potential of cow slaughtering business in Bali. Therefore, a wider business cooperation between players of UMKM and banking will be made possible”, added Ketut. If this plan goes well, in return it will bring a very positive impact on the national economy, especially in supporting the economic growth and creating more job fields.

In the future, Bank Indonesia is planning on intensifying the holding of workshops both in Jakarta and other regions. This also includes follow-up activities in the forms of facilitation of follow-up meetings in the regional areas held by advocacy desk in coordination with the related local government agencies. Besides holding of workshops, Bank Indonesia will also intensify other follow-up meetings and training considered necessary for banking.