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Bekraf seeks to assist startups through Government Incentive Assistance
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In its efforts to accelerate the growth of the creative economy in Indonesia, Bekraf has identified the problem of capital access. (Shutterstock/File)
T
he Creative Economy Agency (Bekraf) launched the Government Incentive Assistance (BIP) program, to provide capital access for creative economy businesses in the digital application, game development and culinary sub sectors, on Thursday at Balai Kartini in South Jakarta.
BIP is a non-banking capital assistance scheme for creative economy businesses in the form of working capital top-ups and/or fixed assets investments facilitated by Bekraf.
"BIP 2017 is a pilot project of capital assistance distribution by the Bekraf capital access deputy. This is one of our efforts to increase the business capacity and production of creative economy businesses in the form of capital top-ups," Bekraf capital access deputy Fadjar Hutomo explained.
In its effort to accelerate the growth of the creative economy in Indonesia, Bekraf has identified the problem of capital access. "One of the problems faced by small-medium enterprises is always collateral problems, while the banks surely cannot abandon their collateral principles in order to build its customers' credibility," Fadjar said.
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A solution that can help small-medium enterprises, Fadjar suggests, is for these businesses to build their own digital credibility.
"In the olden days, whenever a customer applied for credit from a bank, he had to prove his business earnings by providing his bank transfers documents. The process would then be followed up by trade checking by the bank where a bank official would physically visit the businesses' premises to do a sample survey. All of this was to build the customers' credibility," he said. "Today, this kind of data is available digitally."
Bekraf seeks to fill the gap in a startup's 'valley of death' stage during which nine in ten startups fail due to funding problems. Aside from providing capital access assistance, the agency also hopes to create a conducive capital ecosystem by encouraging participation and contributions from private companies and the government.
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The capital access assistance program is available for Indonesian nationals (preferably with incorporated businesses) who have not received any assistance similar to the BIP from any ministry or governmental body in 2017. BIP applicants will have to include a proposal with supporting documents that outline their planned utilization of BIP in their businesses.
Applicants will then be required to undergo interviews and give presentations to the curators before a final verification process to receive the BIP. Online applications are open from July 13 to 24 at Bekraf's official website.
Fadjar said that if this pilot project was successful, Bekraf would be open to providing more capital next year.
"The main consideration for a business to be awarded with this assistance is the business' sustainability," he said. "My message to the recipients is that this is the trust we're putting in you. We are hoping the creative economy can become the backbone of the Indonesian economy so the nation will not only depend on its natural resources, but also on the intellect of its people." (asw)
