UOB Indonesia Supports SMEs through Financing of Commodity Marketing Infrastructure

Surabaya, 12 December 2011 – PT Bank UOB Indonesia (UOBI) has provided Rp40 billion in financing to PT Selaras Makmur Bersama for the construction of a new market system for farmers in East Java province. The company is part of a network of the Indonesian National Commodity Market (“Paskomnas”).

Agriculture is a key pillar for Indonesia’s economy with an estimated contribution of 10% to the country's Gross Domestic Product (GDP). To develop agricultural industry, UOBI provides financing for the construction of the Osowilangun Main Market. This development will make it easier for farmers to sell their commodities using a transparent and efficient auction system.

In his remarks, Iwan Satawinata as Deputy President Director of UOBI noted that "The role of UOBI in financing commodity infrastructure is UOBI's participation in the revitalization process of traditional markets. Farmers & rural communities who have been suppliers of traditional markets will be helped by marketing infrastructure through the Paskomnas Main Market network because the facilities they need are readily available and do not require high investment. Farmers can sell their crops in a legal and orderly place, so as to improve their welfare”.

This inauguration was also attended by Hartono Wignjopranoto who is the initiator of Paskomnas, Slamet Riyadi as Director of PT Asuransi Jasaraharja Putera and Ajeep Rasidi - Director of Credit Approval & Specialist Assets Management at UOBI.

In the meantime, according to Hartono Wignjopranoto who is the initiator of Paskomnas "The current problem that often occurs and has not yet been resolved in the process of agricultural-based economic development is the frequent occurrence of "falling "prices at high harvest times and prices soaring during "famine“ because the marketing system is not yet supportive. One of the solutions to overcome this problem is by improving the marketing system through the development of wholesale market institutions, supporting markets, information networks and revitalizing traditional markets.

Director of PT Asuransi Jasaraharja Putera Slamet Riyadi stated that he welcomes the synergy that has been fostered with UOB Indonesia, "We fully support and are committed to providing total protection to UOB Indonesia's interests, including through the protection of this Orsowilangun Market Fire Insurance." In addition to providing protection for physical buildings in the form of fire insurance, PT Jasaraharja Putera also provides personal accident insurance protection for traders so that traders can do business with a full sense of security.

This synergy between UOBI, Paskomnas and Asuransi Jasaraharja Putra can help in restructuring and organizing the wholesale market, supporting markets, information networks and revitalizing traditional markets, so that they can run quickly and on target. With this synergy, farmers are expected to increase their bargaining position and be able to improve the quality of their agricultural products, so that the traditional market can be attractive again among consumers and welfare of farmers and communities in regencies / municipalities can improve.