government Launches Rp 20 Trillion Credit Scheme too Boost Labor-Intensive Industries
In a bold move to revitalize Indonesia’s labor-intensive sectors, Coordinating Economic Affairs Minister Airlangga Hartarto has unveiled a national credit scheme worth Rp 20 trillion (US$1.23 billion). Announced at the BRI Microfinance Outlook 2025 in Jakarta, this initiative aims to enhance productivity, modernize machinery, and maximize exports for industries such as textiles, furniture, leather products, and toys.
The scheme targets micro,small,and medium enterprises (MSMEs) in labor-intensive industries,offering loans ranging from Rp 500 million to Rp 10 billion. These loans come with interest rates below commercial credit norms and flexible repayment terms of five to eight years.“the interest will be subsidized 5 percent,” Airlangga stated, as reported by Kontan.co.id.
This initiative is part of the government’s broader strategy to support MSMEs, which are the backbone of Indonesia’s economy. By providing accessible financing, the scheme aims to empower businesses to upgrade their operations, adopt new technologies, and expand their market reach.
Key Features of the Credit Scheme
Table of Contents
| aspect | Details |
|————————–|—————————————————————————–|
| Target Industries | Textiles, furniture, leather products, toys |
| Loan Range | Rp 500 million to Rp 10 billion |
| Interest Subsidy | 5 percent |
| Repayment Terms | 5 to 8 years |
| Eligibility | MSMEs in labor-intensive industries |
The scheme is expected to have a notable impact on Indonesia’s economic growth, especially in sectors that rely heavily on manual labor. By reducing financial barriers, the government hopes to stimulate innovation and competitiveness among local businesses.
This initiative aligns with previous efforts to support MSMEs, such as the People’s Business Credit (KUR) program, which has seen adjustments in recent years to increase accessibility and benefits for small businesses [[1]].
As Indonesia continues to navigate post-pandemic economic recovery, this credit scheme represents a critical step toward fostering resilience and growth in key industries.Businesses are encouraged to explore this chance to secure the funding needed to scale their operations and contribute to the nation’s economic prosperity.
For more details on the scheme and how to apply, visit the official government portal [[3]].Indonesia’s business landscape is undergoing rapid transformation, and staying informed is crucial for success.For those looking to navigate this dynamic environment, Prospects offers exclusive interviews and in-depth coverage of the region’s most pressing business issues. This makes it the go-to source for professionals aiming to stay ahead of the curve.
In a recent growth,a new loan scheme has been introduced,targeting businesses with specific criteria. To qualify, borrowers must meet several conditions, including at least two years of business experience and no fewer than 50 employees. This initiative aims to support established businesses while fostering growth in Indonesia’s evolving economy.
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Below is a summary of the key points discussed:
| Key Information | Details |
|—————————————–|—————————————————————————–|
| Loan Scheme Requirements | At least two years of business experience and no fewer than 50 employees. |
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By leveraging resources like Prospects and staying informed about new initiatives, businesses can better navigate Indonesia’s rapidly changing economic landscape.
Interview: Insights on Indonesia’s New Loan Scheme for MSMEs
Editor: Can you provide an overview of the new loan scheme announced at the BRI Microfinance Outlook 2025 in Jakarta?
Guest: Certainly! The initiative aims to enhance productivity, modernize machinery, and maximize exports for labour-intensive industries such as textiles, furniture, leather products, and toys. It targets micro, small, and medium enterprises (MSMEs), offering loans ranging from Rp 500 million to Rp 10 billion. The loans come with interest rates below commercial norms, a 5 percent interest subsidy, and flexible repayment terms of five to eight years. This is part of the government’s broader strategy to support MSMEs, which are the backbone of Indonesia’s economy.
Editor: What are the key features of this credit scheme?
Guest: Here’s a breakdown:
| Aspect | Details |
|---|---|
| Target industries | Textiles, furniture, leather products, and toys. |
| Loan Range | Rp 500 million to rp 10 billion. |
| Interest Subsidy | 5 percent. |
| Repayment terms | 5 to 8 years. |
| Eligibility | MSMEs in labor-intensive industries. |
Editor: How does this initiative align with previous government efforts to support MSMEs?
Guest: This program builds on earlier initiatives like the People’s Business Credit (KUR) program, which has been adjusted in recent years to increase accessibility and benefits for small businesses. It’s a continuation of the government’s commitment to empowering MSMEs, which play a critical role in Indonesia’s economic recovery and growth.
Editor: What impact is this scheme expected to have on Indonesia’s economy?
Guest: By reducing financial barriers, the scheme is expected to stimulate innovation and competitiveness, especially in labor-intensive sectors. It will help businesses upgrade their operations, adopt new technologies, and expand their market reach. This, in turn, will contribute to Indonesia’s economic resilience and post-pandemic recovery.
Editor: Are ther specific eligibility criteria for businesses to qualify for this loan?
Guest: Yes, to qualify, businesses must have at least two years of experience and employ no fewer than 50 workers. These criteria ensure that the support goes to established businesses with the potential for growth and scalability.
Editor: Where can businesses find more details or apply for this scheme?
Guest: Businesses can visit the official government portal for details and application procedures. Additionally, resources like Prospects offer valuable insights and updates on such initiatives, helping businesses stay informed in Indonesia’s rapidly evolving economic landscape.
Conclusion
This new loan scheme represents a significant step in Indonesia’s efforts to support MSMEs, especially in labor-intensive industries. With accessible financing,flexible terms,and a focus on innovation,the initiative is poised to drive economic growth and resilience. Businesses are encouraged to take advantage of this possibility to scale their operations and contribute to the nation’s prosperity.
