Indonesia to provide interest subsidiary for small borrowers
The Indonesian government has announced that it will provide interest subsidies for small borrowers in banks and finance companies to help them cope with the effects of the COVID-19 pandemic.
A small kiosk in Kayu Putih subdistrict in East Jakarta, (Photo: https://www.thejakartapost.com/)Jakarta (VNA) – The Indonesian government has announced that it will provide interest subsidies for small borrowers in banks and finance companies to help them cope with the effects of the COVID-19 pandemic.
Finance Minister Sri Mulyani Indrawati said on April 22 that the government, the Financial Services Authority (OJK) and Bank Indonesia (BI) were currently finalising the regulations as a response to President Joko Widodo’s call for financial assistance for small businesses to survive the pandemic.
The subsidy will be designed for individuals as well as micro, small and medium enterprises (MSMEs) with the financing capped at 500 million Rp (32,269 USD), which is the credit limit in the government’s microcredit programme (KUR).
Sri Mulyani said that businesses that borrow from finance companies were in a similar situation to KUR entities, so they are also eligible for relief in the form of delays in interest payments for six months.
Acting Deputy Minister of Cooperatives and Small and Medium Enterprises of Indonesia Hanung Harimba Rachman estimated that 70 percent of the total existing KUR entities would be able to join a business restructuring programme with the government’s interest subsidy./.
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