TEMPO.CO, Jakarta - The government has launched credit guarantee schemes for labor-intensive corporations, in a bid to restore the state economy. The credit guarantee program is done by providing banks with loan insurance facilities that can raise their working capital credit exposure for corporate borrowers.

"Banks have signed an agreement for the guarantee, especially for the labor-intensive sector that hires many workers," Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday, July 29.

According to the Finance Ministry, 15 banks will get the facility: BCA, Bank Danamon, DBS Bank Indonesia; HSBC Indonesia; ICBC Indonesia; Maybank Indonesia; Bank Resona Perdania, Standard Chartered Bank; UOB Indoworknesia; Bank DKI, and Bank MUFG, Ltd., as well as four state-owned banks Bank Mandiri, BNI BRI and BTN,

According to the Finance Minister's Regulation no.16/2020, the corporate working capital loans facility is directed at companies engaged in export-oriented businesses and/or labor-intensive, with at least 300 people in their workforce.

These exclude SOEs and MSMEs, companies undergoing legal process or charges of bankruptcy, and those with excellent loan performances before the Covid-19 pandemic.

The value of working loan capitals guaranteed is between Rp10 billion and Rp1 trillion.

Read: Govt Offers Working Capital Loan Guarantees for MSMEs

Caesar Akbar