Bank Papua allocates Rp40 billion for MSME sector loans

PT Bank Pembangunan Daerah (BPD) Papua allocated a budget of IDR 40 billion for credit for the Micro, Small and Medium Enterprises (MSME) sector through the Regional Finance Access Acceleration Program (Papeda) of the Papua Provincial Government (Pemprov) in eastern Indonesia until 2023.

Head of the Division of Corporate Secretary of Bank Papua Erna M. Kapisa in Jayapura, Thursday, said the funds were allocated in three stages, namely Rp. 5 billion in 2021, then Rp. 15 billion in 2022 and Rp. 20 billion in 2023.

"For the next three years, Bank Papua is targeting 500 SMEs in Papua to obtain Papeda Credit," he said.

According to Erna, MSEs who enter this program will receive a maximum credit of Rp. 10 million per person with a maximum tenor of two years.

He ensured that the interest on loans of five percent was subsidized by the Papua Provincial Government, so that borrowers only paid the principal. Loans can also be paid in installments over one to two years.

"The installments are not subject to interest, aka zero percent, because it has been subsidized by the Papua Provincial Government," he said.

Meanwhile, the Head of the Papua Province Industry, Trade, Cooperatives and SMEs Service, Laduani Ladamay, said that the Papeda credit concept was the first to be implemented and was a good idea to boost the economy.

"It is not optimal, but we continue to push for it to be carried out properly and in accordance with the targets set," he said.

SOURCE : https://papua.antaranews.com/berita/672673/bank-papua-allocation-rp40-miliar-kredit-sektor-umkm