Small and medium enterprises (SMEs) participate in an expo at the Jakarta Convention Center in Jakarta. The government will subsidize and ease loan interest payments for micro, small and medium enterprises (MSMEs), the backbone of the Indonesian economy, as they struggle to stay afloat amid the COVID-19 pandemic. (Kompas/Heru Sri Kumoro)
The subsidies will cover loan interest ranging from 2 to 6 percent for up to six months for millions of borrowers in the MSME category. The government will also roll out working capital credit for MSMEs, President Joko “Jokowi” Widodo announced on Wednesday.
“The emergency working capital assistance will need to be carefully designed so MSMEs can really access this emergency capital assistance scheme,” Jokowi told an online briefing after a Cabinet meeting. Around 41 million MSMEs have access to credit from financial institutions while 23 million are not bankable.
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