Metropolis Opinion

Indonesian Government decides to cut some complicated bureaucracy of loans for small business (Kredit Usaha Rakyat). Government has distributed around Rp.7 billion IDR for 700.000 people around Indonesia. Government has launched small business loans (micro business) to 1.5 million employees (micro businessmen). The statement is said by Minister of Cooperation and Small Business Suryadharma Ali.

He also said those small business loans are no collateral requirement. To distribute the loans, government has partners with local and government banks (Bukopin, BRI, BNI, Mandiri, BTN). Government has partners with local official staff from businessmen locations.

Government opens his mind. Micro business is economic foundation so they cut bureaucracy to help businessmen who have no collateral, new business, no tax license, no financial statement and more.

There is no restriction for new start up businessmen to get fresh money; government allows them to get loans

This program, of course becomes new government invention and government effort to prevent and avoid the increasing of oil price impact.

The Goal

Through this program, government believes and hopes that people will run out from poverty, reduce unemployment with multiplier effects. For example, when small businessmen create a new business, he/she will hire new labors, the amount of new labors means reduce unemployment. Labors get money as their wage and wage increase their purchasing power.