The program will provide a guarantee for the execution of capital loans of between 10 billion rupees and 1 trillion rupees over a year for companies to manage their money flow.
The government provides a guarantee of up to 80% of loans to companies in priority sectors such as tourism, automotive, textiles and clothing and electronics.
The loan guarantee formula is an extension of a past-announced initiative to help small businesses recover from the effect of the pandemic.
Corporations eligible for the latest program are those affected by the pandemic that employ at least three hundred other people and are believed to have economic growth prospects in the country.
Companies in sectors of precedence $303.76 trillion in working capital over the next six months to meet operating prices after money flows dried up due to social restrictions to combat the virus, Rosan Roeslani, president of the Indonesian Chamber of Commerce and Industry (Kadin), said Tuesday.
Indonesia’s loan expansion in May grew by 3.04% year-on-year, the slowest speed since at least December 2002, as the pandemic wreaked havoc on the economy.
Reporting through Tabita Diela; Edited through Fransiska Nangoy and Ed Davies
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