Encouraging 0 Percent Loan Interest For Micro Enterprises, Minister Of BUMN Is Optimistic To Be Completed In One Month

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir continues to encourage low-cost funding for micro-entrepreneurs.

Erick has also proposed giving 0 percent loan interest for micro-businesses.

The proposal for a 0 percent interest loan for micro-entrepreneurs has been submitted to the Governor of Bank Indonesia (BI) Perry Warjiyo.

Erick is optimistic that the provision of 0 percent loan interest for micro-entrepreneurs can be realized as soon as possible.

"I have sent two Deputy Ministers (Deputy Minister of SOEs) Mr. Pahala and Mr. Tiko to discuss this with BI. We hope that one month can be completed," said Erick in Jakarta, Monday, February 20.

Erick said, the two deputy ministers of BUMN, Pahala Mansury, and Kartika Wirjoatmodjo respectively discussed BUMN funding in the food sector and expanding funding for the Mekaar program.

Furthermore, Erick said that this proposal had also received the green light from President Joko Widodo (Jokowi) in a limited meeting some time ago.

"This proposal has received support from the President because there has been a limited meeting. It's just a matter of how now we push this to become a reality, don't let it seem that large flowers can be much cheaper than micro ones. This is what we always try to balance," said Erick.

Erick emphasized that the micro business sector, which is included in MSME, has a big role in supporting the national economy.

In fact, the MSME sector has a contribution to Indonesia's gross domestic product (GDP) of up to 62.55 percent and also contributes to employment up to 97.22 percent.

However, said Erick, the portion of funding from financial institutions and banks for MSMEs is currently only 21 percent or lower than neighboring countries.

Because of that, BUMN, continued Erick, is committed to helping target a minimum of 30 percent of the financing portion for MSMEs next year.

"Since the beginning, we have continued to encourage community programs such as KUR, PNM Mekaar, and Makmur to increase and reach more business people, including micro-businesses," he said.

Erick said that banking SOEs or Himbara is at the forefront of taking sides with micro-business actors.

Erick said, Himbara's KUR distribution has reached IDR 345 trillion to 7.2 million businesses throughout Indonesia, the Mekaar program has also experienced an increase in the number of customers since the COVID-19 pandemic hit.

Erick said that the number of Mekaar customers before the pandemic was only 5.6 million and based on data as of November 2022, there were 12.7 million.

While Makmur has empowered 43,079 farmers throughout Indonesia and has proven successful in increasing 36 percent of productivity and 46 percent of income.

“This is also our commitment to encourage micro-entrepreneurs to upgrade. Strengthening this sector will have a huge impact on the Indonesian economy in general," he said.