ANNOUNCEMENT 26 Jun 2015In 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):
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 1 July 2015.
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.