6. Direct Assistance Program (BLT)
The Direct Assistance Program for MSMEs was started by the government. Businesses will receive 24 million in help through this initiative.
The program’s objective is to increase the MSMEs’ commercial resilience. The plan attempts to ease the working mechanism for smooth assistance submission.
7. E-brochure Program
MSMEs are introduced to the online market through the e-brochure initiative. The programme was started by the Ministry of Cooperatives in collaboration with Smesco Indonesia.
The programme intends to give MSME products a digital market and platform. Further, it aims to compile a list of all those products in Indonesia.
8. UMKM Tax Incentives
The Ministry of Finance released the UMKM tax incentives regarding tax advantages for taxpayers impacted by the COVID-19. The incentive gives advanced taxpayers an edge, and as a result, the government bears or may exempt the final PPh (Income Tax) of 0.5% for MSME players.
9. UMKM Credit Restructuring
The following are covered by the Ministry of Finance Regulation on the UMKM Credit Restructuring:
- The steps to provide interest and margin subsidies for funding the MSME
- The steps for providing an MSME loan facility with interest and margin subsidies
Both steps are part of the government of Indonesia’s National Economic Recovery Program.
10. Working Capital Policy
The working capital policy seeks to engage with commercial banks to offer MSMEs low-cost working capital loans in the form of deposits or demand deposits.
The government commits funding of IDR 30 million for a period of 6 months in order to speed up the granting of loans to MSME, particularly those in labour-intensive businesses, to encourage the lower-class population’s economic revival with this strategy.
11. UMKM Working Capital Credit Guarantee Scheme
The Ministry of Finance Regulation on the loan guarantee to MSMEs also governs the UMKM Working Capital Credit Guarantee Scheme. Further, it attempts to offer assistance through State Capital Participation, loss restrictions, and IJP payments.