Indonesia: Startups to get $76m in government’s micro-credit guarantee program

Photo by BEKRAF Official

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 loans will be provided by three of Indonesian state-owned banks – PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Negara Indonesia Tbk (BBNI), and PT Bank Mandiri Tbk (BMRI).

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.

Also Read: Indonesia considering tax holiday for e-commerce startups

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.

Also Read:

Indonesia: Top 20 startups receive $336m from foreign investors

Want to invest in Indonesian startups? Show $3.6m in paid-up capital, tie up with local partner & obtain licence

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.