Startups to Get $76m in Government’s Microcredit Guarantee Program in Indonesia
Creative Economy Agency (BEKRAF) has said it will distribute Rp 1 trillion ($76 million) from the government’s micro-credit guarantee program (KUR) to Indonesian startups. The loans will be provided by three of Indonesian state-owned banks – PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Negara Indonesia Tbk (BBNI), and PT Bank Mandiri Tbk (BMRI).
The micro lending or KUR scheme is expected to provide convenience for entrepreneurs in need of financial aid. The government has launched several initiatives – such as cutting interest rates for micro-financing and giving the banking industry a subsidy – to encourage the uptake of the KUR program.
“Other than the KUR scheme, we will also help potential startups to acquire funding through ventural capital schemes. We will do our best to ease local startups in getting funding,” said BEKRAF Deputy for Access to Capital Fadjar Hutomo, on the sidelines of an MoU signing with Bukalapak.com.
The agency has also recommended granting income tax incentives and a tax holiday for e-commerce startup. The recommendation has been included in the draft Presidential Decree and submitted to President Joko Widodo.