ANNOUNCEMENT 26 Jun 2015
In June 2015, the government of Indonesia announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Press release by the Ministry of Finance (in Bahasa Indonesia):
Coordinating Ministry for Economic Affairs regulation 8/2015 (in Bahasa Indonesia)
On 26 June 2015, the Indonesian Ministry of Finance announced it would cut loan rates on micro loans for small and medium-sized businesses ("People's Business Credit") nearly by half from 22 to 12%.
The Ministry said the subsidy would cost 600 billion IDR more, however the Finance Minister was cited saying the move would require an additional 900 billion IDR (ca. 68 million USD) from the state budget.
The cut will apply starting from 26 October 2015 (see regulation 8/2015 by the Coordinating Ministry for Economic Affairs). Given that starting from 1 January 2016, the interest rate was further cut to 9% (cf. related state acts), this intervention is no longer classified as implemented.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.