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Get Ahead With Indonesia’s Government Grant and Support Schemes Today

Indonesia’s Government Grant and Support Schemes Over the year, Indonesia has become one of the most powerful economies in South East Asia. Aside from the vast customer base, Indonesia’s market growth can be attributed to the government’s grant and support schemes for businesses. If you’re thinking of starting your very own business, see below on how Indonesia’s Government Grant and Support Schemes can help you on embarking your entrepreneurial journey.


How Does the Government Help?

The Government has awarded multiple grants and support schemes, especially for small to medium business to thrive and stay afloat, including:

1. Kredit Usaha Rakyat or People’s Business Loan

Better known as KUR, the guaranteed microcredit programme was created to assist SME business in the country through disbursing microcredit to smaller entrepreneurs. Microcredit refers to loans offered to the poor and near-poor individuals who lack good credit history. Under the KUR programme, commercial banks offer low-interest rate plans (even lower than other microloans) for business owners. To apply for the KUR programme, you must first check your preferred bank of choice and read their conditions to see if you or your company are eligible. Although one bank differs from another in terms of documents and requirements, preparing finance-related documents such as copies of your identity certificate, business license, and the latest bank statements would come in handy.

2. Mekar

Supervised and approved by the Financial Services Authority (Otoritas Jasa Keuangan), Mekar provides safe loans for woman entrepreneurs who run microbusinesses across Indonesia. The lending development programme allows wealthier lenders to fund businesses that are in need of financial help. By partnering with financial institutions such as rural banks and credit cooperatives, Mekar aims to provide national coverage to help small entrepreneurs everywhere.

3. Ultra Micro Financing (UMi)

UMi is a revolving fund that aims to help entrepreneurs who do not qualify for the KUR programme (see above). UMi provides a mentoring programme for entrepreneurs regarding business sustainability and speeds up financing by providing credit. The requirements to apply for UMi includes:

  • Must Be an Indonesian Citizen
  • Must not be financed by a financial institution.
  • Must have a valid business permit or statement from a governmental agency or a legal distributor.

See more about UMi here.


COVID-19 Reliefs for Businesses

The Government’s has released increased the state’s budget and introduced several economic stimulus measures to help businesses impacted by the pandemic. Rp120.61 trillion was allocated for tax incentives and credits for businesses. These measures include to reduce the corporate tax from 25% to 22% and allow microloan credit for business debts to be delayed for up to six months.


What Are You Waiting for? Start Applying Today

The government’s grant and support scheme do not just help existing businesses operate, and it also aims to assist new and upcoming businesses in breaking into the market. Before applying to any grant or scheme, make sure you have checked the eligibility and thoroughly understood the conditions.

Indonesia’s Government Grant and Support Schemes