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Jakarta Post

$1.49b earmarked for unbanked businesses

  • Adrian Wail Akhlas and Dzulfiqar Fathur Rahman

    Jakarta

Jakarta   /   Thu, August 13 2020   /  01:00 am
Pekerja memproduksi gitar di Workshop Guitars Gore di Lebak, Banten, Selasa (17/2/2020). OJK memberikan kelonggaran pembayaran pokok pinjaman serta bunga bagi pengusaha sektor usaha mikro kecil dan menengah (UMKM) kepada perbankan guna menyikapi dampak negatif virus corona (COVID-19) pada industri. (Antara/Muhammad Bagus Khoirunas)

The government is set to disburse on Monday Rp 22 trillion (US$1.49 billion) in cash transfers for millions of unbankable micro, small and medium enterprises (MSME) to help them start over during the slowing, pandemic-hit economy. According to Cooperatives and Small and Medium Enterprises Minister Teten Masduki, funds had been allocated for the first phase of the program, which will see 9.1 million MSMEs receive Rp 2.4 million each. It eventually aims to provide cash transfers for 12 million MSMEs. He said the government had compiled data on around 17 million MSMEs, including from cooperatives, regional administrations and the Financial Services Authority (OJK), adding that the government would “verify and validate” the data so that the stimuli could be “well-targeted”. “The President has agreed to provide productive aid for MSMEs in a bid to addres...