"This facilitation is to strengthen the tourism and creative economy sector that exists in tourist villages in South Sulawesi, such as in Rammang-Rammang village," Tourism and Creative Economy Minister Sandiaga Uno said.
"The financing will be based on CBT (community-based tourism)," he added in a statement issued on Saturday.
Access to financing will be provided through a collaboration between the ministry and PT Sarana Multigriya Finansial (SMF), which focuses on community-based financing.
The development of community-based tourism is considered to be the right option to develop the potential that exists in tourism villages, Uno explained.
The model provides major business opportunities and job creation potential for tourism village residents in South Sulawesi.
The government decided to initiate the program to ensure that people benefit from rising tourist visits to Karst Rammang-Rammang village.
Meanwhile, the financial and operational director at PT SMF, Bonai Subiakto, said that the financing will be provided in cooperation with village-owned enterprises (BUMDes).
The size of the loans will range from Rp80 million to Rp100 million without collateral, with a repayment period of up to 10 years.
Through this financing approach, BUMDes will also be empowered, he informed.
Meanwhile, industry and investment deputy at the ministry, Rizki Handayani, said that the installment interest on the financing will only be three percent and the interest will be circulated back to BUMDes.
Earlier, Uno also encouraged Kuningan district in West Java to develop tourism and creative economy products through the community-based tourism concept.
If the tourism potential development involves local human resources, the region's economy will also improve. Moreover, community-based tourism also aligns with sustainable tourism, he explained in a statement issued on Wednesday.
Related news: Minister Sumadi joins South Sulawesi railway line trial
Related news: North Toraja backs halal tourism programs
Translator: Sinta Ambarwati, Fadhli Ruhman
Editor: Rahmad Nasution
Copyright © ANTARA 2023
