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Earthquake Destroys 80% SMEs

To revive the economy, the entrepreneurs must be boosted by fresh working capital.

Selasa, 6 Oktober 2009, 18:13 WIB
Antique, Elly Setyo Rini
Padang city after the earthquake. (AP Photo/Achmad Ibrahim)

VIVAnews – The Indonesian Chamber of Commerce sees that the earthquake that just recently happened in Padang, West Sumatra is destroying the regional economy. It is estimated that around 80 percent small- and medium-enterprises (SMEs) suffered loss reaching billions of rupiah.

Kadin's deputy head for small- and medium-enterprises and cooperations Sandiaga Salahudin Uno said that Kadin is trying to compile information from the Indonesian Young Entrepreneurs Association (HIPMI) and West Sumatra Kadin related to the loss value due to the earthquake.

“We have requested the banks to help by not only restructuring debts but also preparing working capital,” he said in Jakarta on Tuesday, Oct. 6.

He argued that to revive the economy, the entrepreneurs must be boosted by fresh working capital.

It is possible to give working capital boost since Bank Indonesia regulates the economic restructuring at disaster site.

“I hope the economic revival in Padang will take Aceh and Yogyakarta as examples,” he said.

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Translated by: Ariyantri E. Tarman



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