Indonesia readies Rp20 trillion funding for MSMEs, migrant workers

Jakarta (ANTARA) - Coordinating Minister for Community Empowerment Muhaimin Iskandar stated that the Indonesian Government readies loan funding totaling Rp20 trillion (USD1.1 billion) for MSMEs, creative economy players, and migrant workers.

The minister elaborated that the funding aims to boost capital accessibility and provide financial convenience to MSMEs, cooperatives, creative economy players, and migrant workers.

Iskandar highlighted this after attending a limited meeting led by President Prabowo Subianto at the Bogor Presidential Palace, West Java, on Friday.

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"The government provides this affordable credit. Therefore, the amount of revolving loan fund at the Ministry of Cooperatives will be added," he noted in the press statement.

According to the minister, this funding adds to the types of existing capital provided by the government, such as Smallholder Business Credit (KUR) and through the state-run finance firm PT PNM.

In addition, the minister noted that the government would create a special loan program for Indonesian migrant workers, especially those who need capital for training, plane tickets, and administrative expenses.

"Prospective Indonesian migrant workers need money for training, cost structure, departure tickets, training, and documents. We provide loans with very low interest for them," Iskandar explained.

He stated that the Ministry of Finance would follow up on this low-interest loan program.

The funding scheme will duplicate the previously successful system run by PNM through PNM Mekaar, namely capital for underprivileged women and MSMEs.