• 월요일, 04월 19일
월요일, 04월 19일

Indonesian government to provide interest-free loans to retrenched workers and housewives

Indonesian government to provide interest-free loans to retrenched workers and housewives

Picture=Wikipedia

[Newsphopick=Kingsley Lim] The Indonesian government has announced that it will be introducing a new microcredit program (KUR) for retrenched workers and housewives who own micro-sized businesses. The aim of the program is to help those who have been hit hardest by the effects of the coronavirus pandemic.

According to Iskandar Simorangkir, the Coordinating Economic Ministry’s deputy for macroeconomic and finance, the Indonesian government intends to disburse KUR supermicro loans worth Rp 12 trillion ($US814 million) to three million people by the end of 2020.

During a virtual briefing to the press, Iskandar said “We expect the program, which will be launched by the end of August, can help laid-off workers and housewives build their micro-sized productive businesses.”  

According to the latest figures from the Manpower Ministry, there are as many as 2.15 million employees who have been affected by the coronavirus pandemic. An estimated 631,000 informal workers have been retrenched and a further 1.13 million formal workers have lost their jobs.

The National Development Planning Agency (Bappenas) estimates that the projected unemployment rate will reach between 8.19 percent and 9.2 percent in 2020. This is higher than the 2019 unemployment rate of 5.28 percent.

Workers who have been retrenched and housewives who have run micro-sized businesses for a period of at least three to six months, and have never received KUR loans, are eligible to participate in the program.

According to Iskandar, the applicants to the programs must actively take part in a formal or informal mentorship program and have a family member with an existing business.

“Borrowers can apply for a maximum Rp 10 million in loans with a zero percent interest rate until this December,” said Iskandar as he added that an interest rate of 6 percent will be levied from 2021.

The zero percent interest rate will help workers and housewives with their current cash flow needs. Apart from that, banks will not be allowed to seek additional collateral for these loans.

While the program’s intention is to help micro-sized enterprises, sole proprietors and retrenched workers get through the coronavirus pandemic, the Indonesian government hopes that this program can be a permanent fixture in the economy so as to stimulate growth and encourage entrepreneurship, which will contribute to society’s welfare.

As of July 2020, data from the Coordinating Economic Affairs Ministry shows that 2.67 million debtors have been served via the program. KUR loan disbursement reached Rp89.2 trillion although there was a slight plunge during the peak of the coronavirus pandemic from March to May. 

Since the third week of June, demand for KUR loans has sky-rocketed as social restrictions within the country is eased. The government intends to increase the total loan disbursements for the year.

“We have raised the KUR loan disbursement ceiling for this year by Rp 22.2 trillion, making this year’s total figure Rp 198.73 trillion, from the previous Rp 176.53 trillion,” said Iskandar.

He also added that “We’ve decided to extend the subsidy because many KUR borrowers have yet to recover from the impacts of the pandemic.”

0
이 글을 페이스북으로 퍼가기 이 글을 트위터로 퍼가기 이 글을 카카오스토리로 퍼가기 이 글을 밴드로 퍼가기

0 Comments

Add Comment

captcha
자동등록방지 숫자입력
Indonesian government to provide interest-free loans to retr…

Indonesian government to provide interest-free loans to retr…

[Newsphopick=Kingsley Lim] The Indonesian government has announced that it will be introducing a new microcredit program (KUR) for retrenched workers and housewives who own micro-sized businesses. ...

Indonesian retailers embrace the shift to ecommerce

Indonesian retailers embrace the shift to ecommerce

[Newsphopick=Kingsley Lim] Amid the coronavirus and changes to consumer behaviour, Indonesian retailers have made a purposeful transition from plain brick and mortar stores to online channels and e...

Singapore's falls into the worst recession in a decade

Singapore's falls into the worst recession in a decade

[Newsphopick=Kingsley Lim] According to official data sources, Singapore’s virus-ravaged economy has been one of the hardest-hit countries in the world as the economy contracted by 43 percent in th...

Aramco reports plunge in second quarter profits, but sees re…

Aramco reports plunge in second quarter profits, but sees re…

[Newsphopick=Kingsley Lim] Saudi Arabia’s state oil giant, Aramco reported a 73 percent fall in its second quarter profits as the coronavirus pandemic ravages the global economy. The depression in ...

Philippines enters a recession as coronavirus ravages econom…

Philippines enters a recession as coronavirus ravages econom…

[Newsphopick=Kingsley Lim] According to official data, Philippines has entered a recession after a record contraction in economic activity caused by the spread of the coronavirus. As the pandemic r...

Make money whether the market goes up or down – even if you …

Make money whether the market goes up or down – even if you …

[Newsphopick=Kingsley Lim] At some point, investors have heard the mantra that one could make money whether the markets go up or down. Is that true? Well, to some extent, when you hear such things,...

Retail investors in Hong Kong prop up IPOs

Retail investors in Hong Kong prop up IPOs

[Newsphopick=Kingsley Lim] Hong Kong - As Hong Kong attempts to curb the coronavirus with new social restrictions, it prepares itself for billions in investments via new share sales as a number of ...

Australian Economy to decline by '7%' in second quarter

Australian Economy to decline by '7%' in second quarter

[Newsphopick=Kingsley Lim] Australia warned on Thursday that the second quarter will see the economy decline at breakneck speed, while budget deficit remains the largest since the Second World War....

Copper prices may rise in the decade to come

Copper prices may rise in the decade to come

[Newsphopick=Kingsley Lim] Scientific and archaeological evidence suggests that copper was one of the first few metals used by human civilisations around 10,000 years ago. In parts of Asia, humans ...

Technology companies are here to save the markets, but thing…

Technology companies are here to save the markets, but thing…

[Newsphopick=Kingsley Lim] The advent of COVID-19 is considered a black swan event by many. What is a black swan event? It is a low probability, high impact event. No one saw it coming and eradicat...