KUR Flower Subsidy Becomes Proof Of Government Participation With MSMEs

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani stated that the APBN is committed to supporting micro, small and medium enterprises (MSMEs) by providing interest subsidies on people's business loans (KUR).

According to him, this step was taken considering that MSMEs are one of the business lines affected by the pandemic, which is very heavy as well as proof of the government's alignment with the populist business sector.

"This illustrates that the government is serious that the business sector, especially micro, small and medium-sized, has access to funding, investment, and especially at the affordable interest rate," he said in a written statement while attending the Kadin National Meeting, quoted on Sunday, December 4.

The Minister of Finance added that the government will also provide support through transfers to the regions so that local governments can also make efforts to build and develop MSMEs in their regions.

The construction of small and medium industry centers, the revitalization of small and medium industrial centers, built 13 integrated MSME service centers and capacity strengthening funds, as well as increased cooperatives and MSMEs. This is a design from the APBN to help in terms of access capital, marketing, including credit," he said.

The state treasurer hopes that Kadin can also work together with the government to manage and oversee the momentum of Indonesia's economic recovery, including economic transformation in the energy sector or Energy Transition Mechanism (ETM) and in the downstream sector.

"In the downstream sector, we carry out various tax policies and incentives, starting from tax holidays, tax allowances, super deductions which are also provided so that the downstream industry can be competitive and develop in Indonesia," he said.

Furthermore, the Minister of Finance also conveyed his support for reform in the relevant education sector in bringing the relationship closer between education and industry. He also promised to provide incentives for the business sector that took the initiative to cooperate with educational institutions in creating a job ecosystem.

"So the APBN provides support in various fronts, from companies that will strengthen the industrial ecosystem, to small, ultra micro, micro, cooperative, and medium enterprises. We will continue to review these various incentives and of course we will learn whether they need to be modified because economic conditions continue to change, dynamics occurs. We must also continue to study changes in terms of risk profiles," closed the Minister of Finance Sri Mulyani.