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The support of credit guarantee corporations to MSME is considered insignificant

01 October 2020 08:56

JAKARTA - The support of two state-owned credit guarantee corporations to the MSME sector is considered insignificant. This was conveyed by Sihar Sitorus, Member of Commission XI of the House of Representatives (DPR) in a Hearing Meeting with PT Jamkrindo (Persero) and PT Askrindo (Persero), yesterday (30/9).

According to him, it is difficult for MSMEs to get credit guarantee services. "MSMEs are in a dilemma, on the one hand they need funds for additional capital, but on the other hand, they do not have collateral that can be used to apply for a loan," he said.

He said that the demand for credit guarantees was very high amid the economic slowdown due to the COVID-19 pandemic.

"Credit guarantee corporations such as Jamkrindo, Askrindo, and Askrida need to make breakthroughs to mitigate the problems faced by MSMEs in providing collateral, especially to obtain loans from banks," he said. (LK/AR)

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