Guaranteeing MSME Credit, Sri Mulyani Gives Rp. 6 Trillion In Funds To Jamkrindo And Askrindo

Minister of Finance, Sri Mulyani. (Photo by: Setkab)

JAKARTA - The government officially launched the Working Capital Credit Guarantee Program for Micro, Small and Medium Enterprises (MSMEs) in the context of National Economic Recovery (PEN). This guarantee is carried out through PT Asuransi Kredit Indonesia (Persero) or Jamkrindo and PT Asuransi Kredit Indonesia (Persero) or Askrindo.

Finance Minister Sri Mulyani Indrawati said the government had provided state capital participation (PMN) of IDR 6 trillion to the two state-owned enterprises (BUMN). The goal is for this company to have the capital capacity to guarantee the risk of bank credit disbursement to MSME players.

"Jamkrindo and Askrindo are given Rp. 6 trillion in PMN. So that they have the capital capacity to cover this risk. This means that we hope that MSMEs can bounce back," he said at the launching of working capital guarantees for MSMEs which was broadcast on the YouTube account of the Ministry of Finance, Tuesday, 7 July.

Sri Mulyani explained that the government will pay a guarantee fee of IDR 5 trillion for the distribution of working capital loans for MSMEs, which is projected to reach IDR 100 trillion by 2021.

"After the restructuring and the interest is assisted by the government, a new working capital loan guaranteed by the government is given. The government guarantees a premium of Rp. 5 trillion and guaranteed by BUMN Jamkrindo and Askrikndo. We hope that all MSMEs with Rp. 60 million can start taking productive steps," he said.

Not only that, Sri said, the government also provided several other incentives to the MSME sector, such as credit restructuring for up to six months. Then, the credit interest subsidy paid by the government, to the MSME tax which is also borne by the government.

"This means that MSMEs are expected to rise again, we give credit restructuring for loans so that they do not pay for the principal six months, the interest is subsidized by the government, and the interest subsidy will get fuller if the loan gets smaller," he explained.

This state treasurer said, overall the government has budgeted IDR 123.4 trillion in the national economic recovery program (PEN) which is specifically allocated for MSMEs.

The details of the Rp. 123.4 trillion budget, namely interest subsidies of Rp. 35.28 trillion, placement of funds for restructuring of Rp. 78.78 trillion, spending on guarantee fees (IJP) of Rp. 5 trillion, guarantees for working capital of Rp1 trillion, Final PPh for MSMEs borne by the government (DTP) IDR2.4 trillion, as well as investment financing to cooperatives through the Revolving Fund Management Institution (LPDB) of the Ministry of Cooperatives and UKM, IDR1 trillion.