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Jakarta Post

Govt pledges loans for labor-intensive businesses

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Sat, August 1 2020   /  01:00 am
Rupiah banknotes(Shutterstock.com/Maciej Matlak)

The government has guaranteed working capital loans worth Rp 100 trillion (US$6.92 billion) for labor-intensive businesses to speed up business recovery and help businesses survive the coronavirus pandemic. The loan guarantee program was expected to boost credit disbursement from banks to businesses, Finance Minister Sri Mulyani Indrawati said, adding that it would help spur economic activities and set the stage for economic recovery after three months of large-scale social restrictions. “We are hoping that the credit guarantee scheme will restore the risk appetite from both banks and firms so that it will boost economic activities,” Sri Mulyani told reporters on Wednesday. “We will use all of our policy instruments to improve the supply and demand sides.” To be eligible for the government program, labor-intensive firms are required to employ at least 300...