Distribution of KLBI (Bank Indonesia Liquidity Credit to agricultural sector increases
The Government's growing attention to the provision of financial support for small- and medium-scale businesses with funds from KLBI seems to be intended to compensate for the removal of a number of subsidies from the agricultural sector.
According to the January 1990 Package, the bank credit facilities which are supported by KLBI are as follows: Agricultural Undertaking Credit, Credit for Cooperatives (for food procurement and productive activity purposes), Credit for Bulog (for food and sugar procurement purposes), Investment Credit, Home Ownership Credit, and Convertible Credit (for plantation purposes).
According to data from Bank Indonesia, the actual distribution of KLBI reached Rp 10.
By the end of December 1997, KLBI totaled Rp 25 trillion, up to Rp 35.
The highest increase in the use of KLBI was recorded in food and sugar procurement, up 180% to Rp 15.
According to plan, Bank Indonesia will expand its KLBI to Rp 15.