Grants Offered by the Indonesian Government
The government of Indonesia offers several grants for which certain businesses are eligible.
The majority of Indonesia’s economic growth is based on contributions from small and medium businesses at the grassroots level (SMEs). As a result, it is clear that Indonesia’s SMEs are critical to the country’s long-term and sustainable economic growth.
For this reason, the Indonesian government intends to help the country’s SMEs improve their productivity levels and experience growth rates similar to those of large enterprises. The Indonesian government also works with certain non-profit organisations so that it can issue appropriate grants to SMEs across Indonesia.
Some of the grants are highlighted below:
1. Credit for Businesses (Kredit Usaha Rakyat)
This grant offers SMEs in Indonesia with credit, working capital, and investment finance programs that are precisely customised to meet their financial needs. The Startup Incubator Program was established by the Ministry of Cooperatives and SME. This program aims to promote local entrepreneurship in Indonesia and is linked to a number of other SME-related awards granted by the Indonesian government.
2. Start-up Incubator Program
This initiative was launched in collaboration with the Ministry of Corporate Affairs and Small Medium Enterprises (SMEs) in Indonesia. This is to allow more locals to patronise and support local entrepreneurship as most of the businesses received direct grants relating to SMEs by the government.
3. Micro Business and Government microloan Program (KUR).
This grant allows local business owners to loan up to a certain amount for their businesses. The amounts are as follows:
10 million Rupee to 500 million Rupee with an interest subsidy of 6% for the first 3 months and 3% for the next 3 months.
500 million Rupee to 10 billion Rupee with interest subsidy of 3% for the first 3 months and another 2% for the next 3 months.