JAKARTA - Minister of Finance Sri Muluyani hopes that the number of regions submitting applications for local government loans to the central government which is used to help restore economic conditions due to the COVID-19 pandemic will increase.
Currently, he said, there are only 22 district / city governments that have applied for loans to the state-owned company PT Sarana Multi Infrastruktur (SMI) as creditors.
"In Indonesia, there are more than 500 districts / cities, meaning there are still many (areas) that have not been touched. I hope PT SMI will work even harder (to find areas that want to borrow)," said Sri Mulyani at the Ministry of Finance Building, Central Jakarta, Monday, July 27th.
"The impact of COVID-19 is extraordinary. So, this (loan) funds can be used in the context of regional development," he continued.
To make it easier for regions to apply for loan funds, Sri Mulyani also asked PT SMI to provide consulting services, project development, and provide strengthening and enhancing the capability of local governments to be able to design loans.
Sri Mulyani continued, to date, there are 22 local governments that have entered into loan agreements with PT SMI. Loans are submitted with a repayment period of 10 years.
"Three of them are provincial level and 19 of them are regency / city governments," he said.
The region applying for the largest loan is the DKI Pemprov, which is worth IDR 12.5 trillion. A total of IDR 4.5 trillion is used for 2020 and IDR 8 trillion for budgeting in 2021.
The projection of programs that will be carried out from loan funds in DKI starts from the provision of drinking water, flood control, waste processing, transportation, sports, to increasing the tourism sector.
Furthermore, another large pioneer borrowing area is in West Java, with submissions of IDR 4 trillion. Then, Banten proposed Rp1, 9 trillion.
"The assignment given to PT SMI is not only limited as a creditor, but is made in order to strengthen the economy in the regions. I hope that all of our APBN will be able to work fully and cooperate with ministries, local governments, institutions, and BUMN to be able to encourage return of convidence, "he said.
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