Micro and Small Enterprise Credit Facilities

The Minister of Finance has recently issued Decision No. 12/PMK.06/2005 on Micro and Small Enterprise Credit Facilities to regulate the use of the funds generated by the State Debentures issued in 1999 and as regulated in SU-005/MK/1999. The primary purpose of this Decision is to ensure the distribution of credit facilities to micro and small enterprises as a means of supporting their sustainability and growth.

The Decision explicitly defines a micro enterprise as an individual or family-owned business either as a sole trader or as a member of a cooperative engaged in production with a maximum sales volume of no more than IDR 100 million per year. A small-scale enterprise is an individually-owned or an incorporated or unincorporated body including cooperatives with assets of no more than IDR 200 million (excluding land, buildings, and fixtures) or sales of no more than IDR 1 billion per year.