Indonesian government boosts financing access for housing, SMEs, and agriculture

The Indonesian government is actively working to broaden financing access across key economic sectors, aiming to stimulate growth in housing, agriculture, labor-intensive industries, and small and medium-sized enterprises (SMEs). Ferry Irawan, Deputy for Coordination of State-Owned Enterprise Management and Development at the Coordinating Ministry for Economic Affairs, highlighted these efforts during the 8th Indonesian Muslim Congress in Jakarta.

For the housing sector, the government is providing demand-side financing through the Housing Liquidity Facility (FLPP) and Self-Help Housing Stimulant Assistance (BSPS). Irawan stated that financing facilities are also available for the supply side, benefiting contractors and developers involved in housing construction, with accumulated financing potentially reaching Rp20 billion to Rp25 billion.

Beyond housing, the government is supporting the agricultural sector with financing schemes for production tools and mechanization, alongside developing credit programs for farming. Similar financial support is being extended to industries and trade, with discussions underway to tailor these schemes to meet business needs. Additionally, the government is promoting local currency transactions (LCT) with partner countries like China, South Korea, Japan, Malaysia, and Thailand to decrease dependence on the US dollar in international trade.