Coordinating Minister for the Economy Airlangga Hartarto and Grab Indonesia President Ridzki Kramadibrata symbolically handed the micro KUR from Mandiri for a Grab merchant in Jakarta on Wednesday. (Photo Courtesy of Grab Indonesia)
Gov't Teams Up with Grab to Channel Loans for MSMEs
BY :JAYANTY NADA SHOFA
SEPTEMBER 26, 2020
Jakarta. The government has teamed up with all-in-one app company Grab Indonesia to disburse subsidized loans, or KUR, to the pandemic-hit micro, small, and medium enterprises (MSMEs) who have partnered with the digital platform.
The company helps channel credits disbursed by state-owned bank BRI, popularly known as the country’s biggest lender for MSMEs.
According to the Coordinating Minister for the Economy Airlangga Hartarto, KUR relaxation becomes part of the so-called National Economic Recovery program (PEN) to boost supply and demand. The government chooses to prioritize MSMEs in the recovery plan for its strategic role in the economy.
MSMEs contribute 61.1 percent to the economic growth and absorb 97 percent of the labor force or up to 116.9 million workers.
"[Because of this], we have relaxed the financing policy for MSMEs by giving easier access, extending payments, and adding the interest subsidy. This KUR relaxation makes [getting loans] more affordable and easier for the MSMEs," Airlangga said in Jakarta on Wednesday.
MSMEs can now enjoy an interest-free loan until the end of the year thanks to the 6 percent interest subsidy. There is a postponement of principal payment for a maximum of six months as well as a relaxation on both the restructuring provisions and administrative requirements.
Out of the Rp 695.2 trillion (around $46.5 billion) for PEN, the government has allocated Rp 123.46 trillion for MSMEs. The recovery program will also continue in 2021.
In KUR disbursement, the government has worked alongside Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia.
Grab had already joined forces with BRI since last May to launch cash loans and KUR for their GrabFood merchants and GrabKios agents.
Up to 22,000 GrabFood and GrabKios partners are eligible to secure a loan with Grab and BRI. Merchant partner's loan applications will be prioritized after passing Grab's initial screening on their in-app performance.
"We hope to support the government in recovering the economy and increase MSMEs' competitiveness. Until the end of this year, we hope to embrace more than 400,000 MSME partners with our initiatives including this KUR disbursement," Grab Indonesia President Ridzki Kramadibrata said.
Grab has worked alongside Bank Mandiri to disburse KUR to GrabFood merchants in a pilot project, he added.