Indonesia’s Creative Economy Agency (BEKRAF) Tuesday said it will distribute Rp 1 trillion ($76 million) from the government’s micro-credit guarantee program (KUR) to local startups.
The micro lending or KUR scheme is expected to provide convenience for entrepreneurs in need of financial aid. The government has launched several initiatives – such as cutting interest rates for micro-financing and giving the banking industry a subsidy – to encourage the uptake of the KUR program.
“Other than the KUR scheme, we will also help potential startups to acquire funding through ventural capital schemes. We will do our best to ease local startups in getting funding,” said BEKRAF Deputy for Access to Capital Fadjar Hutomo, on the sidelines of an MoU signing with Bukalapak.com.
The agency has also recommended granting income tax incentives and a tax holiday for e-commerce startup. The recommendation has been included in the draft Presidential Decree and submitted to President Joko Widodo.
On Tuesday, BEKRAF signed an MoU with online marketplace Bukalapak.com to help 100,000 small and medium vendors go online. The firm has agreed to provide online marketing guidance, talent mentorship, product development, and help protect intellectual property rights.
Previously, head of BEKRAF Triawan Munaf had said that the agency was planning to establish a startup incubation program this year to accelerate the growth of startups, amid mushrooming startup companies in the country,
‘As part of the incubation program, we also plan to allocate a budget next year to send the potential startups to Silicon Valley,’ he said.
President Joko Widodo had tasked the agency with supporting the digital industry, including game and application developers to prevent them from becoming one-hit wonders or ending up selling the apps to foreign enterprises.