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Government Guarantees MSME Working Capital Loans

The government has promised to guarantee up to Rp 100 trillion (US$9.25 billion) in working capital loans for micro, small and medium enterprises (MSMEs) until 2021.

By
Karina Isna Irawan
· 4 minutes read
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Minister of Finance Sri Mulyani Indrawati took a photo session with traders at Pasar Besar City of Malang, East Java,  onThursday (4/1/2018). On that occasion, the Minister of Finance reviewed the provision of ultra-micro credit (for small entrepreneurs who had difficulty accessing capital from banks.

JAKARTA, KOMPAS — The government has promised to guarantee up to Rp 100 trillion (US$9.25 billion) in working capital loans for micro, small and medium enterprises (MSMEs) until 2021. The loan guarantee is expected to increase the disbursement of economic stimulus and speed up economic recovery.

The government has allocated Rp 123.46 trillion so far to MSMEs in stimulus programs, comprising interest subsidies, fund placement for loan restructuring, purchasing guarantees, working capital loan guarantees, income tax (PPh) exemptions and cooperative investment funds.

Editor:
naranasrullah
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