VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Jakarta (voinews.id): Foreign Minister Retno Marsudi receives the foreign ministers of ASEAN countries for the Asean Ministerial Meeting at the Asean Secretariat, Jakarta, on Friday. The First Minister that arrived was Foreign Minister of Singapore, followed by Brunei Darussalam, Cambodia, Thailand, then the ASEC Secretary General, Timor Leste, Lao DPR, the Philippinnes, and Viet Nam.

This year, Indonesia is hosting the 32nd ASEAN Coordinating Council (ACC) Meeting and ASEAN Foreign Ministers’ (AMM) Retreat in Jakarta from 3-4 February 2023 at the ASEAN Secretariat (ASEC) Jakarta. (VOI/Yasmin)

President Joko Widodo received a visit from ASEAN foreign ministers (Menlu) at the Merdeka Palace, Jakarta, Friday (3/2). On that occasion, the Head of State emphasized the importance of ASEAN unity, so that it cannot be a proxy of any party. (Antaranews)

Jakarta (voinews): The government uses the state budget to provide interest subsidies so that micro, small, and medium enterprises (MSMEs) can access capital at lower interest rates, Finance Minister Sri Mulyani Indrawati has said.

"The state is present by providing access to financing or capital, which is usually difficult for small and medium businesses. Even if they get it, the interest rates are usually astronomical," the minister pointed out at an event entitled “State Budget for the Whole Country” here on Thursday.

The government's initiatives to provide financing have included interest/margin subsidy schemes, such as subsidies on the People's Business Loan (KUR) interest rate.

KUR is a working capital loan for productive individual debtors, business entities, and business groups that either have yet to possess additional collateral or have insufficient additional collateral.

It aims to increase and expand access to financing for productive businesses, increase MSME competitiveness, and encourage economic growth and employment.

Under the interest/margin subsidy schemes, the government bears a part of the interest borne by the debtor in the form of interest subsidies. Interest subsidies are allocated based on the difference between the credit interest rate and the interest rate borne by debtors.

"With low interest rates, so they are not burdened," Minister Indrawati said.

The government also uses the state budget for the Ultra Micro financing program (UMi), which is aimed at the lowest-level micro businesses, which cannot yet be covered by banks through the business credit program.

The program is a follow-up to the social assistance program and seeks to allow them to be independent in pursuing their business.

"So, Indonesia, in achieving its goals, the state budget becomes its instrument. The instruments can either be spending, financing, or often also called debt, it can also be state revenue-wise, such as taxes, customs and excise, and non-tax state revenue," she elaborated.

UMi provides a maximum of Rp10 million (US$671) in financing, which is disbursed through non-bank financial institutions (LKBB).

It aims to enable easy financing for ultra micro businesses and increase the coverage of entrepreneurs to be assisted by the government.

According to media reports in July 2022, UMi financing had reached Rp22.04 trillion (US$1.4 billion) since 2017 and it had been distributed to 6.4 million debtors in 509 districts and cities.

The realization of KUR distribution until December 14, 2022, had reached Rp345.55 trillion (US$23.2 billion) or 92.60 percent, with 7,209,944 business actors as debtors.

The target in 2022 was Rp373.17 trillion (US$25 billion). (antaranews)

The Nusantara Capital Authority has confirmed that a government regulation on incentives for investment in the new capital Nusantara will be issued in one or two weeks' time.

“The government regulation, God Willing, (will be issued) in one or two weeks. Hence, in the next two weeks, we will organize thorough dissemination (to inform) what incentives will be available in the new capital. The regulation would reveal all,” Nusantara Capital Authority head Bambang Susantono informed after the “2023 Mandiri Investment Forum (MIF)” here on Thursday.

Though he did not specify the kind of incentives that will be provided, Susantono said that they will cover all investable sectors in the new capital.

A presentation on the draft government regulation at the event touched upon incentives such as tax holidays for investments and office relocation, super tax deductions for some activities, a special tax for financial centers, and special treatment on value-added tax.

“As (Investment Minister) Bahlil Lahadalia earlier said, it is correct that it will be far more attractive than other locations. Perhaps, it will take more time or is on the next level, but it is expected that its pioneering trait will make more people attracted to invest in new places,” Susantono said.

Earlier, Investment Minister and Investment Coordinating Board (BKPM) head Bahlil Lahadalia assured that investment in the new capital would be far more attractive than investment in other Indonesian regions.

“I underscore that for the new capital, the tax holiday or other incentives will be greater and better than in other regions in Indonesia. This is because of the lex specialis principle applied at the new capital,” Lahadalia said.

Special facilities will be provided to stimulate investment in Nusantara city and the investment schemes and benefits would bolster investor confidence in the new capital, he said. (Antaranews)