"As of August 20, 2021, the government's fund placement program in banks had driven a total of Rp419.78 trillion in credit disbursement from State-Owned Banks Association (Himbara), Indonesian Sharia Banks, and Regional Development Banks (BPD)," the minister stated at the United Overseas Banking (UOB) Economic Outlook 2022 webinar monitored here on Wednesday.
According to Hartarto, some 57.53 percent of the credit realization was disbursed to Micro, Small and Medium Enterprises (MSMEs) actors.
In addition, the government offers additional support for MSMEs players by distributing Productive Aid for Micro Enterprises (BPUM); assistance for street vendors; as well as expansion of credit guarantees and additional interest subsidies for People's Business Credit (KUR) and non-KUR.
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"Moreover, KUR will be increased to reach Rp285 trillion in 2021. The government has also launched cash social assistance for street vendors and stalls targeting informal MSMEs actors that have not been assisted by the existing programs," the coordinating minister noted.
Furthermore, the government continues to conduct structural reforms to facilitate business actors to increase their investment, productivity, and employment. It is being accomplished through the implementation of the Job Creation Act, among others.
"For instance, the implementation of the risk-based Online Single Submission launched on August 9, 2021, to support competitiveness of Indonesia's investment," Hartanto stated.
Meanwhile, to close the gap in infrastructure financing as well as accelerate the investment process, the government has established the Sovereign Wealth Fund to increase investment opportunities in various sectors, so it can support the nation’s sustainable development.
“Investments managed by the Indonesia Investment Authority (INA) are expected to increase productivity to create jobs. The government also allocates additional capital of Rp60 trillion in 2021. Thus, the INA can invest in supporting economic growth," he stated. (
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