The Government has, with some delay, issued regulations designed to stimulate and support Indonesia’s farmers and farmer-owned businesses with special government-backed financing.* These new regulations are the accompaniment to a law passed in 2013 to protect and empower farmers.** The reason for the delay between the law and the implementing regulations is not clear.

The Regulations are intended to stimulate and support farmer and farmer-owned businesses. Measures included in the Regulations include government-backed finance. Farmers and farmer-owned businesses who wish to apply for special financing must submit their farming plans to the government. After consideration, the government will give recommendations to farmers or farmer-owned businesses to apply for government-backed financing to particular banks or financial institutions. Application procedures have been significantly simplified so that the financing can be obtained quickly and with minimum administration.

*Government Regulation Number 81 of 2020 concerning the Farming Business Financing.
**Law 19 of 2013 concerning the protection and empowerment of farmers.