He affirmed that several strategic steps have been taken to ensure that MSMEs can contribute optimally to supporting national food security.
"The Ministry of MSMEs is preparing a ministerial regulation to allocate Rp20 trillion (around US$1.22 billion) for (subsidized low-interest-rate) People's Business Credit (KUR), specifically for production equipment," he remarked here on Tuesday.
This program aims to help especially farmers, livestock farmers, and MSME entrepreneurs in the fisheries sector obtain business equipment, with a credit ceiling of up to Rp2 billion (around US$122.895).
He also drew attention to alternative financing offered through the Government Investment Center (PIP).
"PIP offers four percent interest for non-KUR MSME financing. This support is also available for Village-Owned Enterprises (BUMDes), opening up opportunities for local governments to expand access to financing at the village level," he explained.
In addition, the minister noted that currently, of the 46 KUR distributing institutions, 75 percent of the distribution is carried out by state-owned banks.
However, to expand the reach to cover MSMEs in regions, the role of Regional Development Banks (BPD) will be increased.
"This is an affirmative step to ensure that MSMEs across the country get fair and equitable access to financing," he remarked.
Furthermore, he underlined that MSMEs can play a role in various supporting sectors of the Free Nutritious Meals (MBG) program, such as supplying raw materials, producing ready-to-eat food, and distributing food.
"The involvement of MSMEs in various sectors will open new opportunities and bolster their position in the national food supply chains," he remarked.
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Translator: Aji Cakti, Raka Adji
Editor: Azis Kurmala
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