Indonesia to distribute financial assistance for nine million SMEs next week

Cooperatives and Small and Medium Enterprises Minister Teten Masduki (right) talking to the press during a public discussion in Jakarta on Jan. 30. - JP

JAKARTA (Xinhua): Indonesia will distribute working capital assistance for 9 million small and medium enterprises (SMEs) to help them revive businesses which have been dashed by the novel coronavirus pandemic, a minister said here on Wednesday (Aug 12)

Each owner of the business will receive a 2.4 million rupiahs (some US$162.24) fund in the hope it would boost productivity, Indonesian Minister for Cooperatives, Small and Medium Scale Enterprises Teten Masduki noted.

"We have prepared the financial assistance and it will be distributed in the middle of this month," he said at the presidential office.

Meanwhile, Director General of Budgeting of the Finance Ministry Askolani said that the working capital assistance was expected to be distributed on Monday.

"The plan is that the financial assistance will be launched on Aug 17. This programme is expected to ramp up productivity," he said.

The partial lockdown and physical distancing policies imposed to rein the transmission of the novel coronavirus have been ravaging business activities as exports depressed.

Besides, the policies have also restricted people's mobility, halted spending on consumption and disrupted chains of supplies.

The biggest Southeast Asian economy decelerated 5.32 per cent in the second quarter, still the signs of recovery have emerged in June along with the relaxation of the restrictions and reopening of business activities under tight health protocols.