New Regulation on Ultra-Micro Financing

In a bid to boost the number and economic ability of entrepreneurs across Indonesia, the government is aiming to provide accessible financing facilities for productive businesses which are owned by individuals and/or micro-scale enterprises. This financing program is now known as ultra-micro financing.[1]
 
In order to address this goal, the Ministry of Finance (“Ministry”) had just issued Regulation No. 22/PMK.05/2017 on Ultra-Micro Financing (“Regulation 22/2017”), with the aim of ensuring that the realization of this ultra-micro financing program is in line with principles of good governance.[2] Regulation 22/2017 outlines a set of provisions relating to the program which address the following areas: