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Indonesian Government Grants

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Indonesian Government Grants

2020-05-22T12:50:00+08:00October 31st, 2019|0 Comments

The government of Indonesia has provided grants for which many of the country’s businesses are eligible. Most of the businesses which are eligible for Indonesian government grants are small and medium enterprises (SMEs); however, other qualifying businesses may also claim them.

Government Grants in Indonesia

Definition of Government Grants

A government grant is a financial provision given by national, provincial or state, or local government authorities for any of various reasons and to any of eligible people or entities. It is effectively a gift from the government. This is because the money provided via a government grant is not to be repaid. There are no fees, loan policies, interest rates, subsidies, or revenue-sharing policies which are attached to a government grant. Grants allow many entities to pursue projects and business activities which they otherwise would not have; they also provide people who receive them with additional financial stability.

 

Purposes of Government Grants

Certain government grants are intended to help entities which receive them to improve their facilities. These entities are usually those which have the function of public service and do not have sufficient funds to improve their facilities without external assistance. Grants often provide funds for the repair of damages, reinforcement of buildings, increase of environmental sustainability of the premises, or construction of additional structures to serve the needs of the entity’s clients.

There are also government grants which provide funds for educational material. Such grants are usually given to schools and universities. Other educational grants support those who are economically disadvantaged and allow them to receive an education in the same way as do their more affluent counterparts.

Some grants exist which facilitate the ability of national, local, or private entities to prepare for emergencies. The funds provided through such grants could be used to pay for equipment that would mitigate the effects of emergencies or pay the salaries of emergency workers. Grants related to emergencies increase the level of safety and security in any given community.

Some governments also offer grants which support social programs. These social programs may contribute to environmental preservation, educational advancement, or assistance of people with disabilities, among others. Through the issuance of such grants, a government proves to the citizens of the country that it cares for all who live in the country.

Academic research and artistic endeavors can also be supported through government grants. Governments provide grants in these two areas because a country which produces high-quality products in such fields will be held in higher esteem throughout the rest of the world. Therefore, these grants are used by governments as ways to improve the country’s global reputation and image.

 

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 relies on the contributions of grassroots-level small and medium enterprises (SMEs). Therefore, it is obvious that the SMEs of Indonesia have tremendous importance 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 organizations so that it can issue appropriate grants to SMEs across Indonesia. One of these is the Credit for Businesses (Kredit Usaha Rakyat). This grant provides credit, working capital, and investment financing plans which are specifically tailored to serve the financial needs of SMEs across Indonesia. The Ministry of Cooperative and SME has also created the Startup Incubator Program. This program is intended to promoting local entrepreneurship throughout the country and is connected to several other SME-related grants provided by Indonesia’s government.

 

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How Indonesia’s Government Grants Improve the Country’s Economic Status

Government grants play key roles in the economic growth of any country in the world; such is also true in Indonesia. Indonesia grants its entrepreneurs with financial aid to help them grow their business and thereby improve the economic status of the entire country. Other grants provided by the Indonesian government include the scholarships for college and university students as well as grants for SMEs, which have already been mentioned. Most of a country’s revenue is generated through industrial activity. Grants boost this industrial activity because when people receive grants from the government, they may invest it in business and boost the corporate activities of the business in question. In this way, the entire country is enriched by the increased business activity, thus leading to larger amounts of tax revenue being collected and thus an overall improvement in the economy of the country. Such has certainly been the case in Indonesia. Over the first quarter of 2019, Indonesia’s gross domestic product (GDP) grew by 5.1%. This figure is similar to those of each quarter over the last three years; during each quarter over this period, Indonesia’s GDP grew between 4.9% and 5.3%. While there are many factors that may cause any country’s economy to grow, the fact that the Indonesian government has been using and distributing its grants in a responsible and measured manner is certainly one of the reason why Indonesia’s economy has remained very stable and in a constant state of growth.

Indonesia’s consistent and rapid economic growth has led many to have desires to migrate there so as to take advantages of the economic advantages present across the country. Should this fact hold true for you as well, we at Paul Hype Page & Co can meet your need. Our team will work with you so that you will be able to receive whichever work visa you might need to live and work in Indonesia. If what you desire is permanent resident status, we can also arrange for that if you have already fulfilled all of the necessary criteria.

 

How Government Grants Benefit the Businesses that Can Claim Them

There are many ways in which governments grants benefit businesses in Indonesia which claim them. The most important advantage of government grants given to SMEs in Indonesia relates to the financial benefits. Grants are essentially free money and do not have to be repaid in any way. This fact allows many SME owners across the country which might not have significant amounts or revenue and are unable to repay a loan to find themselves in a much more financially viable situation.

It is also not difficult to discover if one’s business is eligible to receive any grants provided by the Indonesian government. This is because information about the availability of and criteria to receive such grants can easily be found on many different websites. There are also many free resources online that allow business owners to discover more information about the many grants which are available in Indonesia. There is a great deal of information about the specific details of each government grant provided by the Indonesian government. This information is crucial because those seeking a grant will have ensure that their business is eligible to receive a government grant before applying for one. It does not matter which industry one enters because all that is necessary to receive a grant is the fulfilment of the Indonesian government’s criteria.

Businesses in Indonesia which have received a grant are more likely to go on to receive others. This is because such businesses will already have been recorded as having received a grant. Thus, other organizations will see such a business as reliable and trustworthy. This in turn increases the visibility of the business which receives the grant. This is a benefit of receiving a government grant that goes beyond the financial advantages of grants. Such is the case because a business which has received a grant has evidence that the Indonesian government endorses its business ideas and operations. Such grants prove that the government believes that the business in question is one which makes positive contributions to the country.

The possibility of benefitting from one or more government grants may drive one to start a business in Indonesia. If you find this fact to be true in your case, we at Paul Hype Page & Co are willing to assist you with the setup of your new Indonesia-based business. We will take you through the process of incorporation. Our incorporation experts will see to it that nothing important is missed throughout your incorporation experience.

 

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Indonesian Government Grants FAQs

Which Industries have the most Government Grants Received by their Businesses?2020-04-02T15:27:20+08:00

Government grants in Indonesia may be received by business in any industry. However, the fact remains that the government deems more businesses in certain industries as being more deserving of government grants than in other industries. In Indonesia, the industries with businesses that have claimed the most government grants are textiles, coal, automotive, palm oil, and petroleum and natural gas.

Can a Business Claim more than One Government Grant?2020-04-02T15:26:28+08:00

According to the current laws in Indonesia, there are no restrictions on the number of grants for which a business owner may apply. Should it happen to be the case that a business is eligible for more than one government grant at the same time, the business owner may apply for all of them. The Indonesian government typically supplies further details related to its grants for the benefit of all those who intend to apply for one or more of them.

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