Through the Askrindo divestment, Bank Indonesia’s stake in the company has declined from 55% to about 25% following a capital deposit by the Government of Rp850 billion. The capital deposit by the Government to Askrindo has substantially helped overcome the constraints associated with the prevailing high business risk perceived by the banking community.
With such additional capital, Askrindo’s ability to insure credit extended by banks has increased. On 5 November 2007, the Government launched a credit program for activities of the poor (KUR), which is distributed through banks and insured by Askrindo. PT Bahana Pembinaan Usaha Indonesia (BPUI) continues to contribute significantly in terms of providing financing and business opportunities to MSMEs.