Confusion Reigns Over Franchise Ruling As Players Seek Loopholes

Jakarta Post:

With the help of government funds, 3 lending collateral providers for micro and SMEs – 2 of which are state owned, will be able to guarantee up to Rp 14.5 trillion in bank loans for micro, small and medium enterprises over the next 3 years.

Assuming an average credit amount of Rp 25 million, the figure could provide financing access to over half a million SMEs and help support a workforce of 1.7 million people, said Suharsono, president director of PT Asuransi Kredit Indonesia (Askrindo), one of the 3 fund providers.

The other 2 providers are Perum Sarana Pembangunan Usaha (SPU) and PT Penjamin Kredit Pengusaha Indonesia (PKPI).

The funds were made available after the government allocated Rp 1.45 trillion to the 3 companies, based on a recently-issued presidential decree on the empowerment of MSMEs, issued in June. Full article.