Gov’t Announces Subsidy Program for All MSMEs in Indonesia
Date 30 April 2020
In a bid to boost their performances, the Indonesian Government decided to subsidize Indonesian Micro, Small, and Medium Enterprises (MSMEs).
“This also includes online MSMEs and cooperatives,” Coordinating Minister for Economic Affairs Airlangga Hartarto stated after a limited meeting, Wednesday (29/4).
On its implementation, Airlangga stated that after the Government Regulation Bill (RPP) is ready and Minister of Finance Regulation is issued, the program can be implemented although some programs like Smallholder Business Credit (KUR) already preceded.
“The KUR has been started and we have received reports from state-owned banks that most of them have been implemented,” the Coordinating Minister said, adding that Regulation of the Financial Services Authority Number 11 of 2020 and regulation on restructuring of credit under Rp10 billion has begun their implementations.
On the occasion, Minister of Cooperatives, Small and Medium Enterprises Teten Masduki stated that 60.5 million ultra micro businesspersons obtained a credit of under Rp10 million from various credit agencies, be it KUR or non-KUR program. Of the figure, he said, only 3 million have received the cash assistance, meaning there is a shortage of data. “We have proposed for an addition,” he stated.
Furthermore, the Minister said 5.1 million eligible recipients of Mekaar program (which stands for Membina Ekonomi Keluarga Sejahtera (Fostering the Economy of the Prosperous Family) has not been included in social assistance program although some of them has been proposed to join Pre-Employment Card program.
“In addition to cash assistance, there will be assistance from Pre-Employment Card and Village Fund programs,” he concluded. (TGH/EN)
Translated by: Fairuzzamani Inayatillah
Reviewed by: Lulu Wuliarti