19 Oct

Govt to provide interest subsidy for small borrowers as COVID-19 hits hard

first_imgThe government has announced that it is to provide interest subsidies for small borrowers in banks and finance companies to help small businesses cope with the effects of the COVID-19 pandemic.Finance Minister Sri Mulyani Indrawati said the government, the Financial Services Authority (OJK) and Bank Indonesia (BI) were currently finalizing the regulations as a response to President Joko “Jokowi” Widodo’s call for financial assistance for small businesses to survive the pandemic. “[Those people], for example, have borrowed money to buy motorcycles to run a business, such as ojek [motorcycle taxi] drivers. They will be treated according to the same policy that is applied to [KUR borrowers],” added Sri Mulyani.Similar to KUR, the small borrowers are also eligible for relief in the form of delays in interest payments for six months. The full interest subsidy is to be applied in the first three months of the relief program, while the half subsidy is to be applied in the latter three months.The policy, she asserted, would involve banks and financial institutions with a good track record.“The government will avoid moral hazard. The track record of the financial institutions is very important. We’re making policies to help the people but we want to remain prudent,” added the finance minister.Read also: COVID-19: Govt to give Rp 5m aid to shops, ‘ojol’ drivers as business slows downCooperatives and Small and Medium Enterprises Ministry acting finance deputy Hanung Harimba Rachman estimated that 70 percent of the total existing KUR entities would be able to join a business restructuring program with the government’s interest subsidy.However, those entities are required to have loan-quality classifications described as Collectability One (pass) and Collectability Two (special mention) and to have no major cash flow problems before the pandemic.”We have submitted an additional budget to the Finance Ministry for this program,” Hanung said in a virtual meeting with House of Representatives Commission VI overseeing SMEs on Wednesday.Topics : The subsidy will be designed for individuals as well as micro, small and medium enterprises (MSMEs) with the financing capped at Rp 500 million (US$32,269), which is the credit limit in the government’s microcredit program (KUR).“We are working on regulations for small borrowers in banks, whose loan sizes are almost the same as entities in the KUR program. They’re not KUR [entities], but they borrow money from finance companies,” Sri Mulyani said on Wednesday.Read also: Indonesia to issue larger tax breaks to cover 11 more sectorsShe said that businesses that borrow from finance companies were in a similar situation to KUR entities as they carried the “same burden”.last_img read more

16 Oct

Wolf Administration Cabinet Members Host 20th Cabinet in Your Community Event

first_img June 08, 2018 Press Release Middletown, PA – Today, Wolf administration cabinet officials were joined by community members for a Cabinet in Your Community event at Penn State Harrisburg.“The Cabinet in Your Community series has been hosted across the commonwealth to ensure that my administration has the best opportunity to have valuable dialogue with all Pennsylvanians,” said Governor Tom Wolf. “I look forward to hearing concerns from the Middletown community after today’s event, as the feedback we receive from community members is vital to the success of state government.”Featuring Department of Labor & Industry Secretary Jerry Oleksiak, Department of Aging Secretary Teresa Osborne, Department of Insurance Commissioner Jessica Altman, Department of Education Secretary Pedro Rivera, and Department of Human Services Secretary Teresa Miller, the department heads provided region-specific updates on major projects, accomplishments, and answered impromptu questions from the audience.The Cabinet in Your Community initiative is a series of townhall-like events in which members of the community are given the opportunity to interact with cabinet secretaries and talk about the issues important to their region.The next Cabinet in Your Community event is currently scheduled for June 13 in Pittsburgh at the University of Pittsburgh with cabinet secretaries from the departments of Community and Economic Development, Education, Health, Corrections, and Insurance. Wolf Administration Cabinet Members Host 20th Cabinet in Your Community Eventcenter_img SHARE Email Facebook Twitterlast_img read more