Credit and Fee Facilities for Micro, Small, and Medium Scale Enterprises

The Minister of Forestry has issued Regulation No. P.16/MENHUT-II/2008 within the framework of Presidential Instruction No. 6 of 2007 which was confirmed in order to expedite the development of the real sector and particularly with regard to micro, small, and medium scale enterprises.

The Regulation sets out the criteria for the micro, small, and medium scale enterprises (Usaha Mikro, Kecil, dan Menengah / UMKM) that can take advantage of these facilities. It also lists the banks that are involved in the program as well as the general company involved with respect to development and the credit insurance company.

Generally, the UMKM that qualify for the facilities are those that are under the guidance of the Department of Forestry, those that derive income from forest products and have a relationship to the prosperity of the community living in the vicinity of the forest, and those that can generate profits and show continuity and marketing initiatives.

The guaranteed credit that can be channeled is a maximum of IDR 500 million and a margin or interest rate is set at a maximum of 16% effective per annum.

This Regulation has been in force since 21 May 2008.