2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

Government Support for MSMEs During the Covid-19 Pandemic In the form of relaxation of asset quality assessments, postponement of principal & interest subsidies, low-interest working capital loans guaranteed by Askrindo and Jamkrindo, tax incentives for MSMEs borne by the government, and Productive Presidential Assistance for Micro Enterprises MSMES CREDIT RESTRUCTURING WORKING CAPITAL CREDIT 1 ASSET QUALITY ASSESSMENT POSTPONEMENT OF PRINCIPAL & INTEREST 2 3 SUBSIDIES According to POJK KUR Super Mikro: Loan up to IDR 10 million Placement of LOW INTEREST Funds at Bank Himbara IDR30 Trillion Government No. 11/POJK.03/2020 & . 14/POJK.05/2020 Interest subsidy will be 19% consist of additional interest subsidy 6% and regular interest subsidy 13%, debtors pays 0% interest from Aug - Dec 2020. KUR MKM (SMEs): Asset Quality Arrangement: Loans < IDR • 10 Loan up to IDR 10 million up to IDR 500 million Postponement of installments and 6% additional interest subsidy for the period from Apr-Dec 2020 to 0%. KUR MSME Credit, non-KUR: Loan > IDR 500 million up to IDR 10 billion GUARANTEE Government support in the form of guarantees by Askrindo and Jamkrindo OTHER SUPPORT 4 billion can be based only on the accuracy of principal interest payments Restructurisation: The credit quality for affected debtors is determined to be current restructuring since The restructuring is carried out without a ceiling limit / type of financing • Postponement of installments and interest subsidies 3% for the first 3 months and 2% for the next 3 months 5 UMi, Mekaar, Pegadaian (Pawnshop) Postponement of principal installments and interest subsidies for 6 months from Apr-Sep 2020 • Fintech Loan, Co-op, Farmers, LPDB, LPMUKP, UMKM PEMDA Relaxation is given a 6% interest subsidy for 6 months Based on Coordination Meeting held by Financing Policy Committee for MSME on December 28, 2020, KUR implementation in 2021 are as follows: Additional interest subsidy 3% for 6 months, debtors pays 3% interest. Increase the ceiling of KUR in 2021 to IDR 253 trillion. Source: Coordinating Ministry for Economic Affairs Income Tax for MSMEs is borne by Government MSMEs receive a final PPh rate of 0.5% (PP 23/2018) borne by the government (DTP). 6 MICRO BUSINESS PRODUCTIVE PRESIDENT ASSISTANCE Direct assistance to 13 million Micro Enterprises and 1 million street vendors in the amount of IDR 1.2 million per recipient 17
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