JAKARTA - The Micro, Small and Medium Enterprises (SME) Financing Policy Committee has officially revoked restrictions on the distribution of microcredit to the trade sector. It aims to encourage economic recovery in the third and fourth quarters of 2020.
The policy is stipulated in the Coordinating Minister for Economic Affairs' Regulation No. 6/2020 as amended by Coordinating Minister for Economic Affairs' Regulation No. 8/2020 on Special Provisions for Microcredit Recipients Affected by the Coronavirus Pandemic (COVID-19).
"The MSME sector is expected to be able to support the economy in accelerating economic recovery supported by the policy of exempting restrictions on the distribution of microcredit for the trade or non-production sector, namely through the policy of eliminating microcredit distribution targets in the production sector," Coordinating Economic MINISTER Airlangga Hartarto said as quoted by Koran Tempo, Tuesday (28/7).
Through this policy, Mr Hartarto said, the government will provide relaxation of principal installments and an additional microcredit interest subsidy of 6% for the first three months and 3% for the next three months.
According to the Credit Program Information System as of Monday (27/7), microcredit realisation during the COVID-19 pandemic has reached Rp 110.13 trillion to 5.83 million debtors. (MS)