"The president wants us to make a leap. The portion of lending for MSME is targeted to reach more than 30 percent in 2024," Coordinating Minister for Economic Affairs Airlangga Hartarto stated after a limited meeting at the Presidential Palace here on Monday.
The portion for MSME currently reaches 20 percent of the total banking loan.
The government will need to relax some requirements for MSME credit in order to achieve the target, including increasing the ceiling for micro loan (KUR) without collateral, from Rp50 million to Rp100 million.
The KUR loan ceiling will also be increased, from Rp500 million - Rp1 billion to Rp500 million - Rp2 billion.
"These changes will be reported to the president," Hartarto stated.
President Jokowi has also instructed his aides to maintain the interest rate for MSME to remain competitive.
The government has contemplated on the option to raise guarantee from the Indonesian Credit Association (Askrindo) and Indonesia Credit Guarantee Corporation (Jamkrindo) or to impose rate subsidy for the regular KUR Program apart from the National Economic Recovery Program.
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EDITED BY INE