Small and medium sized businesses are to receive subsidies on their loans.
Modest sized companies, in particular those which are export focused, will receive interest rate subsidies, says Industry minister Fahmi Idris. Viewed as the key to spurring on somewhat sluggish economic growth the small businesses which will attract the subsidy are those which are considered to be producing export quality goods. The minister explained on 9th September:
There will be a selection process first, to choose companies which have an export orientation, before they can get the subsidy.
(Akan dilakukan seleksi lebih dulu terhadap industri dan perusahaan yang memiliki orientasi ekspor, sebelum mendapatkan subsidi bunga.)
The measure takes into account the fact that bank interest rates in Indonesia remain at a fairly formidable level with the minister saying that a subsidised rate of 9% was ideal to allow renewed growth.