Government Provides Low Interest Loans For Export-Oriented SMEs

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - In line with efforts to recover the national economy, the government continues to provide support for Small and Medium Enterprises (SMEs) as one of the main sectors driving the economy. This time, support was implemented through the Export Special Assignment (PKE) program.

The Ministry of Finance appointed the Indonesian Export Financing Agency (LPEI) to provide assistance for export-oriented Small and Medium Enterprises.

This PKE program has been stipulated by Decree of the Minister of Finance (KMK) Number 372 / KMK.08 / 2020 concerning Special Assignments to Indonesian Export Financing Institutions in the Context of Supporting the Export-Oriented Small and Medium Business Sector.

The Director General of Financing and Risk Management (Dirjen PPR) of the Ministry of Finance Luky Alfirman said the PKE program is provided in the form of financing facilities with low terms and interest rates.

Luky said, there are two ceilings for this financing facility, namely for small businesses of Rp. 15 million to Rp. 2 billion and for medium enterprises of Rp. 2 billion to Rp. 15 billion.

"The maximum investment is five years, while working capital is given a maximum of three years," he said, in Jakarta, Tuesday, September 8.

According to Luky, with the support of this facility, it is hoped that SMEs will get affordable financing facilities so that they can increase competitiveness, support domestic industrial growth, and encourage an increase in the contribution of SMEs in Indonesia's exports.

Furthermore, Luky explained, this uncertain condition made the government continue to commit to providing interest subsidies for MSMEs to pay their installments.

"Furthermore, we also provide working capital credit guarantees for our MSMEs in collaboration with Jamkrindo and Askrindo. Where the government bears no cost guarantee fees and 80 percent of all business actors default," he explained.

To encourage SMEs to take advantage of this PKE facility, the Ministry of Finance (Kemenkeu) and LPEI conducted a socialization with the topic 'Support for Export-Oriented Small and Medium Enterprises'. This socialization is aimed at SME sector business actors, the Cooperatives and SME Service Offices, as well as the Industry and Trade Office.

On the same occasion, Director of State Financial Risk Management (PRKN) Heri Setiawan, and LPEI Executive Director Daniel James Rompas said, the PKE program for SMEs is a continuation of the PKE program that has been running to support projects / transactions that are commercially difficult to implement. but deemed necessary by the government.

Daniel said, several PKE programs that have been successfully implemented include PKE for railroad passenger cars, PKE for business resilience, PKE for aircraft, PKE for commodities to the African region, and PKE for developing the tourism sector.

"The success of the previous PKE program is expected to provide optimism for SME businesses to revive themselves and encourage national economic recovery," he said.

According to Daniel, LPEI plays a role as the Ministry of Finance's special mission vehicle (SME) in providing easy export support access for SME businesses. Through this information, SME entrepreneurs are expected to gain an understanding of the PKE program and be encouraged to take advantage of PKE facilities.