To support the Food Security Program (KKP-E) and the development of biofuel crop plantations, PT Bank Rakyat Indonesia Tbk (BRI - Persero) is ready to provide credit financing.
"The type of credit provided includes investment credit and working capital loans. The beneficiaries are farmers, cooperatives, and farmer groups, with full funding sourced from BRI," said BRI Corporate Secretary, Muhamad Ali, in a press release in Jakarta, Friday (14/9).
Credit Limits and Eligible Sectors
According to Ali, the maximum credit limit is Rp500 million, with a maximum tenure of five years. The credit funds can be used to develop food crops, including:
- Rice, corn, soybeans, cassava, sweet potatoes, peanuts, cowpeas, mung beans, and seed production for rice, corn, and soybeans.
In addition, financing is also available for the development of horticulture crops such as:
- Shallots, chilies, potatoes, garlic, tomatoes, ginger, turmeric, galangal, bananas, salak, pineapples, dragon fruit, melons, watermelons, papayas, strawberries, mangosteen, mangoes, durians, oranges, apples, and melinjo.
BRI also supports plantation crop development, including:
- Sugarcane cultivation, maintenance of tea and coffee (both robusta and arabica), and pepper farming.
For livestock farming, BRI provides credit for:
- Beef cattle, dairy cows, buffalo, goats, sheep, broiler chickens, free-range chickens, ducks, quails, rabbits, and pigs.
Financing for Equipment and Fisheries
BRI also provides funding for the procurement or renewal of agricultural equipment and machinery, including:
- Tractors, water pumps, egg incubators, milk coolers, cassava graters, fruit sorting machines, juicers, castor seed processing machines, feed processing machines, and sugarcane pruning tools.
In the fisheries sector, BRI offers credit for working capital to support:
- Fish capture operations (through KUB) and aquaculture farming (through Pokdakan).
BRI’s Leading Role in KKP-E Credit Distribution
According to Ali, BRI is the largest KKP-E credit distributor among 22 participating banks, holding a market share of over 50%. As of June 2012, BRI's outstanding loans for KKP-E totaled Rp1.9 trillion, compared to the national total of Rp3.46 trillion.
"The cumulative credit disbursed from 2007 to the first half of 2012 has reached Rp4.7 trillion, benefiting 300,000 farmers across Indonesia," Ali added.