Micro and Small Enterprises Funding Program by State-owned Enterprises

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The Minister for State-Owned Enterprises has recently issued new Regulations* which expand the ways in which state-owned enterprises may fulfill their social and environmental responsibility obligations. The new Regulations allow state-owned enterprises to fulfil their social and environmental responsibility obligations by funding certain qualifying micro and small enterprises.

Through this programme, micro and small enterprises that fulfill the criteria, may be given working capital loans of up to IDR 250 million, as well as additional loans of up to IDR 100 million.

The qualifying criteria include that the enterprise:

  • must be owned by an Indonesian citizen;
  • must operate the same type of business as the state-owned enterprises; and
  • should be located in the same place as the state-owned enterprises.

The Regulations came into effect on 8 April and will be retroactively applied from 1 January 2021.

* Regulation No. Per-05/MBU/04/2021 concerning SOE Social and Environmental Responsibility Programme.