The Government Adds Assistance For Small Businesses In The Form Of Soft Loans With 0 Percent Interest

JAKARTA - The government will increase assistance for micro and small entrepreneurs. This assistance program is in the form of soft credit with 0 percent interest for the first six months.

The head of the National Economic Recovery and Transformation Task Force, Budi Gunadi Sadikin, said that the soft credit was a continuation of the Productive Presidential Assistance (Banpres) program amounting to IDR 2.4 million, which has begun to be distributed to micro-entrepreneurs.

"We open the opportunity to proceed to the second phase of the program, where we can provide micro-business soft loans," he said, during a press conference at the Presidential Palace, Jakarta, Friday, August 28.

In order not to burden micro-entrepreneurs in paying loans, Budi said the government also offers a 0 percent interest scheme for the first six months.

"Thus, it will be very helpful for MSME entrepreneurs to continue to grow," he said.

Budi explained that this follow-up program had been planned and discussed with the Ministry of UMKM as well as the Coordinating Ministry for Economic Affairs.

According to Budi, the productive banspres which had already been given was valued at Rp. 2.4 million could be used by business actors as working capital. So that it can encourage an increase in the turnover of business actors. In the future, business actors will be recognized by banks so that additional soft loans can be given.

Furthermore, Budi hopes that this additional assistance in the form of soft credit can be used by small business actors in developing their businesses amidst weakening economic growth due to the COVID-19 pandemic.

"So the grant is used as working capital. After they make business and are known as bank account officers, they are given soft credit," he said.

Meanwhile, the criteria for beneficiaries of soft credit assistance are micro business creditors and KUR, including those who apply for loans after February 2020. The plan is that this assistance will be launched in September 2020.