TEMPO.CO, Jakarta - The government is preparing Rp3.24 trillion for ultra micro-financing (UMi) throughout 2018. The credit will be disbursed to more than 800,000 micro-businesses.
"The Rp3.24 trillion fund is the combined amount of the 2018 budget of Rp2.5 trillion plus an additional carryover from the 2017 budget worth Rp747 billion," Finance Minister Sri Mulyani said in a working meeting with the House of Representatives' (DPR) Finance Commission yesterday, Jan. 23.
The actual of UMI financing in 2017 reached Rp743 billion disbursed to 307,000 debtors.
In mid-August 2017, the government launched a pilot project for the financing of micro business actors who have no access to bank loans. This project is targeted to help finance 44 million micro businesses in need of less than Rp10 million-worth of credit.
The Government Investment Center (PIP) as the implementer of UMi financing said the pilot project is implemented in 19 districts/cities across the nation. The disbursement is done via three state-owned enterprises, PT Pegadaian, PT Bahana Ventura, and PT Permodalan Nasional Madani. The credit has an interest rate between two and four percent.
Sri Mulyani hopes that the program can help micro business players—especially those from the lower class—to be more independent and empowered.
ALI N.Y.
