Finance Ministry Disburses Cash Transfers to 700,000 Indonesian MSMEs

JAKARTA, KOMPAS.com – Indonesia’s Ministry of Finance assured that disbursement of cash transfers of 2.4 million rupiahs ($163) for micro, small and medium enterprises (MSMEs) has started, an official confirmed on Monday, August 17. 

“The financial assistance has already begun [on August 17],” Expert Staff to Finance Minister for State Expenditure Kunta Wibawa Dasa Nugraha told Kompas.com.

He said the government disbursed 1.68 trillion rupiahs ($114 million) in cash to about 700,000 MSMEs in the first phase of the program.

Also read: 12 Million Indonesian SMEs to Get Cash Assistance from Government Soon

“It has been transferred to around 700,000 MSMEs, but not yet all [recipients],” he said.

Previously, Minister of Cooperatives and Small-Medium Enterprises Teten Masduki said the government disbursed cash transfers to 12 million MSMEs. However, Teten said, only 9.1 million recipients will receive the fund assistance during the first phase of the program. For this batch, the government has allocated a total of 22 trillion rupiahs ($1.5 billion) to recipients who have never received loans from any financial institution or known as ‘unbankable’ MSMEs.

The program runs from August 17 to December 31. The cash transfers totaling 2.4 million rupiahs will be done via banks to each recipient.

Also read: Indonesian SMEs Record 14pct Growth in Exports

He said the registration process should be done via an agency responsible for cooperatives and MSMEs at the provincial/regency level, authorized cooperatives, and financial institutions registered in the Financial Services Authority (OJK). Also, the government institutions for channeling credit program under state-owned companies or a public service agency.

Teten said the Ministry of Cooperatives and SMEs will validate 17.23 million micro-businesses under the ministries and authorized cooperatives.

(Writer: Yohana Artha Uly | Editor: Erlangga Djumena)

Source: https://money.kompas.com/read/2020/08/18/050600226/kemenkeu--700.000-umkm-sudah-terima-dana-blt-rp-2-4-juta-.