The Government Is Preparing IDR 20 Trillion To Fund Low-interest Loans For Migrant Workers And Small Businesses

Dok. Biro Pers Sekretariat Presiden

The Government Is Preparing IDR 20 Trillion To Fund Low-interest Loans For Migrant Workers And Small Businesses

Monday, 06 Jan 2025

The government is allocating an initial fund of Rp 20 trillion for a plan to provide low-interest loans to migrant workers, small and medium enterprises (SMEs), cooperatives, and creative economy actors. This low-interest loan program will complement existing initiatives, including the People's Business Credit (KUR) and funding provided through PT Permodalan Nasional Madani (PNM). "We have KUR, PNM, and rolling loan institutions, and now we are adding this program. The goal is to increase access to low-interest capital, totaling around Rp 20 trillion," said Coordinating Minister for Community Empowerment Muhaimin Iskandar at the Bogor Presidential Palace on Friday (January 3, 2025).

Muhaimin explained that the model being initiated involves low-interest savings and loans. This could take the form of rolling loans or other types of loans. "Like an education endowment fund or a rolling endowment fund," he mentioned. He noted that affordable credit is particularly needed for migrant workers due to high costs, including training fees, flight tickets, and paperwork to ensure they can work legally.

Muhaimin stated that this plan will be further discussed with relevant ministries and agencies. He cited the good practices of PT Permodalan Nasional Madani (PNM), a state-owned enterprise focused on savings and loans for businesswomen. Unlike traditional banks, PNM targets micro-customers who are often overlooked by banks. "This model will be replicated for migrant workers, SMEs, and cooperatives," Muhaimin added.

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