Bukit Asam channels Rp 6 billion to cooperatives and SMEs

State coal miner PT Tambang Batubara Bukit Asam (TBBA) have channeled a total of Rp 6 billion soft loans this year to cooperatives and small and medium enterprises (SMEs) in eight provinces.

PT TBBA director of engineering A.C. Purba said that the channeling of soft loans to cooperatives and SMEs was to meet the government's regulations that require state enterprises to take aside a portion of their profits for cooperatives and SMEs.

Purba noted that TBBA, whose head office was located in Tanjung Enim, South Sumatra, had every year allocated certain amount of funds for cooperatives and SMEs.

"This year, we have channeled soft loans to hundreds of SMEs in a number of provinces," Purba said when presenting Rp 700 million in soft loans to 25 SMEs and six cooperatives in Ponorogo, East Java. Besides, PT TBBA also presented seven coal steam-powered kettles worth Rp 106 million and 1.4 tons of coal briquettes to Gontor Islamic boarding school in Ponorogo.

The handing over of coal steam-powered kettles and coal briquettes was to promote the use of coal briquettes among household in East Java. Purba noted that TBBA has coal briquettes plant in Gresik that could produce 700 tons of coal briquettes per month. TBBA has coal briquettes distribution channels in Gresik, Madiun, Malang and Jember. Coal briquettes are sold Rp 350 a kilo.

Besides East Java, PT TBBA has also extended soft loans to SMEs in South Sumatra, Lampung, West Java, Jakarta, Central Java, and Yogyakarta. (*)