Dutch Bangla Bank Limited

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					                                     Bank Jabar (Indonesia)

Name of project: Kredit Peduli Jabar & Banten (west java & banten care loan)

Write up:

A. Background

         In spite of Indonesian economy progressed encouragingly, but income distribution is not
equal one with another. This is effect of endless economic crisis, so that still a lot of
underprivileged society.
         According to governmental program to alleviate of poverty, mission and function of bank
jabar to, as well as financial institution and an instrument of local autonomy-government, which is
established with the purpose to support and accelerate regional economy. In 2001, both of them
released Peduli Jabar & Banten Loan Scheme to assist micro entrepreneur in order to increase
their income and to create job vacancy. Choosing micro scale of business activity in Peduli Jabar
& banten loan scheme base on its potent to create lowest cost of job vacancy and to increase
society income.
         Observe of progress and expand to remote area, scope of loan distribution is expanded
by co-operation with rural bank. For this reason , there is changes to a part of regulation as
contain at Revision Technical Guide Book 2005 as reference and guidance for peduli jabar &
banten loan implementation.

B. Definition
   1. Bank represent Bank Jabar is commercial bank which function to fund raising and
        distribute loans, as well as functions as an instrument of local autonomy-government,
        which is established with the purpose to support and accelerate the development of local
        development in all areas and also as a source of local government income in order to
        increase the wealth level of local society.
   2. Kredit Peduli Jabar & Banten is a loan facility to increase income and to create job
        vacancy which available to assist micro entrepreneur in west java and banten region.
   3. The Target peduli jabar dan banten loan scheme is the productive sector entrepreneur in
        all economic sectors except agribusiness sector, part of lower economic level family
        whom fulfilled requirement:
                Have run business for 1 year
                Family business
                Having own fund to support business operational
                Having max net equity equal Rp 50.000.000,- except land and building.

     4.   Rural Bank (BPR) is BPR owned regional government (municipality, regency or province
          government) in west java and banten area, with requirement as follow :
              Legal entity is Regional Corporation (Perusahaan Daerah)
              Having business plan
              Minimum Rating for 2 year by Central Bank of Indonesia is in Fairly sound
              Never listing on infringement to governmental regulation
              Non blacklist debtor released by Indonesian Central Bank
              Non blacklist debtor of Bank Jabar / others
              Including guarantee program

Chapter II

1.        Purpose

     Represent Bank Jabar social responsibility to support governmental program for developing
     micro scale business in west java and banten area

2.       Objective
     Supporting micro business scale wishes can reduce level of poverty in west java and banten

Chapter III

Procedure of distribution Peduli Jabar dan Banten loan

A. Type of Loan
   Facility of Peduli Jabar and Banten Loan as follow working capital loan facility for supporting
   operational business activity and investment loan facility for investment financing like
   kiosk,booth, ext.

B. Total amount of Peduli Jabar & Banten loan
   Total amount is Rp 100.000.000 allocate to all branch office of Bank Jabar

C    Service Point
     Loan distribution term:
      a. Direct , debtor come to branch office of Bank Jabar
      b. Partnering with rural bank (linkage program) in municipality or regency

D    Total amount of Loan
     a. Direct
        - Initial Proffering : Rp 10.000.000
        - Revolving            : Rp 15.000.000
     b. Linkage Program
        - Initial Proffering : Rp 3.000.000
        - Revolving            : Rp 5.000.000

E     Period
      a. Direct
         -      Working Capital facility is 2 years
         -      Investment facility is 3 years

      b. Linkage Program
         - Working capital facility is 2 years

          -   Investment facility is 3 years

F    Interest, Penalty, Provision, Administration, and stamp duty
     a. interest rate of this credit both direct or linkage program base on notes of direction ( 7 %
          p.a , flat)
     b. Penalty for delaying credit installment is 5 % total debt both of distribute term.
     c. Free for provision fee and administrative fee
     d. Stamp duty is charged to the debtors

G Collateral
  a. Direct : Feasibility of Business, and collateral if needed.

     b. Linkage Program : Personal Guarantee from rural bank’s stakeholder         (mayor/regent)

H Payment System

    Repayment of Loan installment is periodically (principal + interest) is accord to debtor ability

I   Insurance
     The Loan is endorse to insurance institution (base on direction note) insurance fee become
     branch expense

J   Incentive
     Incentive fee to rural bank which distribute Peduli Jabar & Banten loan base on direction note

K Other Requirement
   Loan withdrawal can be immediately carried out by branch office without the fund
      reimbursement to head office
   Fund Reimbursement is carried out provided has maximum amount of loan is has been
      stipulated previously is not fully distributed
   Principal loan installment which has been receipt by debtor can be re-used by branch
      office without reimbursed to head office.
   Earning of interest loan, loan penalty converted to be branch office income without repaid
      to head office

Chapter IV
Loan Distribution Procedure

A. Loans distribution
   1. Direct to debtor (micro entrepreneur) by branch office
          a. Loan proffering
               Applicant filling available form at branch office enclosing as follow:
                      Identity card duplicate of Husband and or Wife
                      Family card duplicate
                      Statement letter from village authority that describe the applicant
                      Additional collateral if needed

            b.   Loan feasibility
                 Loan distribution is executed selectively base on prudential banking principles.
                 Analysis is made simply, as follow :
                  On the spot investigation, to observe business feasibility, address, and
                    financial ability of applicant to repayment of his debt.
                  Observe of accomplishment requirement
                  Feasibility total amount credit

            c.   Credit Decision
                 Depend on result of analyzing, branch office makes decision to accept / reject the
                 loan proffering.

            d.   Loan withdrawal
                 Improving Loan withdrawal in term :
                  Letter of loan have signed by debtor accord the collateral
                  All requirement have been completed

            e.   Loan commitment
                 Term of loan commitment is drawn privately (before hand)

   2.   Loan distribution with linkage program (rural bank)
           a. Application
               Rural bank proposal must be completed by :
                 Establishment permit, Business activity permit, and articles of association
                 Permit for opening branch office
                 Decree of director assignment
                 Company Registration (TDP),Tax payment registration number (NPWP), ext

            b.    Loan analysis
                  Loan distribution is executed selectively base on prudential banking principles. A
                  contains of analyst, as follow :
                   Management Aspect
                   Marketing aspect
                   Financial Aspect
                   Technical aspect
                   Social Economic Aspect

            c.    Loan Decision
                  Depend on result of loan analyzing, branch office makes decision to accept /
                  reject the loan proffering.

            d.    Memorandum of understanding
                  For distribution peduli Jabar & Banten Loan to applicant, Memorandum of
                  understanding must have made between Bank Jabar and Rural Bank.

            e.    Loan Withdrawal
                  Loan withdrawal by reimburse to branch office is enclosed with list of debtor
                  which have been realized by rural bank in condition :
                   Letter of loan have been signed by Rural Bank Director
                   All requirement have been completed

            f.    Loan Agreement
                 By Drawn privately

            g.    Collateral agreement
                  According to the rule

   B.    Supervision
         Branch office is supposed to monitor the use of loan as well as its repayment either
         actively or passively periodically

Chapter V
Report & Evaluation

A. Report

   Report upon the progress of the loan of peduli jabar & banten implementation is carried out
   by the branch office every month periodically.
B. Evaluation
   Evaluating for guidelines is periodically and continuously.

Supporting Materials:

    1.   annual report,
    2.   photo of Bank Jabar Social Awareness,
    3.   summary of the entry,
    4.   progress report,
    5.   Pikiran Rakyat and
    6.   Mitra Bisnis publications