"If we see, it was a bit slow at first. Only Rp1 trillion was absorbed in July. However, this August, the realization increased by almost Rp21 trillion," Nugraha remarked during a webinar titled "Prospects for Economic Recovery in the Small and Medium Industry Sector" on Tuesday.
Nugraha expounded that of the ceiling of Rp123.47 trillion, five programs were implemented to support the recovery of MSMEs during the COVID-19 pandemic.
First, a budget of Rp35.28 trillion was disbursed under the interest subsidy program for MSMEs, of which Rp2.55 trillion was spent until August 2020.
Furthermore, tax incentives, in the form of final income tax (PPh) for MSMEs, are borne by the government, wherein MSMEs receive a PPh facility of 0.5 percent, with budget allocation of Rp2.40 trillion, of which Rp302 billion was realized by August.
Moreover, of the Rp6-trillion budgeted for guaranteeing new working capital loans for MSMEs through PT Jamkrindo and PT Askrindo, Rp51.84 billion was absorbed during the same period.
Fourth, Rp78.8 trillion of the government’s funds were earmarked for restructuring, of which Rp41.2 trillion had been absorbed.
Finally, investment financing for cooperatives through the Revolving Fund Management Institution (LPDB) of the Ministry of Cooperatives and Micro, Small, and Medium Enterprises had reached 100 percent of the Rp1-trillion budget.
“We do not stop here. After we complete designing the program, we monitored and evaluated it. If the condition will continue to rise like this, we expect all the stimulus to be spent," Nugraha stated. Related news: Ministry challenges SMEs to create innovative products at IFI 2020
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Translator: Sella P, Azis Kurmala
Editor: Rahmad Nasution
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