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Home Indonesia

Govt committed to MSME advancement

WNAM: by WNAM:
January 31, 2025
in Indonesia
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Govt committed to MSME advancement
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Jakarta ( WNAM MONITORING):  Coordinating Minister for Economic Affairs, Airlangga Hartarto, has emphasized the government’s commitment to supporting the development of micro, small, and medium enterprises (MSMEs).

At the BRI Microfinance Outlook 2025 in Tangerang, Banten, on Thursday, he outlined the efforts made by the government to support MSMEs.

One of them is the debt relief and write-off program for MSMEs carried out in the first 100 days of President Prabowo Subianto’s term.

The government is also providing an interest subsidy of up to 5 percent for investment credits taken by MSMEs engaged in labor-intensive sectors, such as textiles and garments, footwear, food and beverages, and furniture, among others.

The subsidy is an opportunity for MSMEs to scale up production capacity for exports.

The government has also taken various other measures, such as forming the national export enhancement task force and supporting MSME financing through the Ultra Micro (UMi) financing program and the low-interest rate People’s Business Credit (KUR).

The government has also assigned special tasks to Indonesia Eximbank (LPEI), which provides working capital for exports and facilitates guarantees and insurance.

In addition, VAT exemption and import VAT exemption are being provided to export-oriented MSMEs.

The government has also rolled out intangible asset empowerment programs, including intellectual property rights certification and halal certification, to help MSMEs access formal financial services.

Additionally, the government has initiated several programs such as the Proud of Indonesian Products (BBI) Movement, the MSMEs Digital Market, and the National Online Shopping Day (Harbolnas), which are expected to boost demand for local MSME products.

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