Indonesia to extend assistance to small businesses

Illustrative image (Photo: Jakarta Post)

Hanoi (VNA) – Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki has said his Government is seeking to expand its business assistance programme to around 3 million more small businesses affected by the COVID-19 outbreak by reallocating funds from other programmes within the government’s stimulus plan.

The ministry plans to increase the initial target of 12 million micro and small businesses to 15 million by mid-December.

Through the assistance programme, eligible small businesses can receive a grant of 2.4 million RP (163 USD) to help them survive the economic impacts of the health crisis.

With the expansion, the Government plans to increase the budget allocation for the programme from 22 trillion RP to 36 trillion RP.a

According to a survey of 1,165 businesses conducted between April and May by the Asian Development Bank (ADB), 91.8 percent of small businesses said they need loans without interest or collateral, and 89.5 percent want cash assistance or grants.

As of September 2, the Government had disbursed 13 trillion RP, or about 61 percent of its initial budget of 22 trillion RP./.