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Jakarta Post

Micro enterprises aid halved for this year, but coverage to be expanded

  • Dzulfiqar Fathur Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, April 8, 2021   /  08:30 am
The Jakarta Post Image
An official from Jakarta’s one-stop integrated service records the data of a kiosk owner in Tanah Tinggi on July 23. The Jakarta administration has relaxed permit requirements for small and medium enterprises (SMEs) that have been forced to cease operations because of the COVID-19 pandemic. JP/Seto Wardhana(JP/Seto Wardhana)

The government will halve working capital aid (BPUM) for micro enterprises this year while expanding coverage by 19 percent following budget cuts. The Cooperatives and Small and Medium Enterprises (SMEs) Ministry has halved the aid to Rp 1.2 million (US$82.41) per recipient and plans to cover 2.4 million more micro enterprises than last year, bringing the total targeted coverage to 12.8 million by the third quarter. As of April 1, the government had disbursed Rp 7.9 trillion to around 6.6 micro businesses, which are legally defined as those with asset values below Rp 50 million and annual revenues below Rp 300 million. “The amount will be reduced because of budget constraints, among other considerations, so it will only be half,” ministry micro enterprise deputy Eddy Satriya said in a virtual presser on Tuesday. The cuts will enable the ministry to meet the lower ...