The Ministry of Finance (“MoF”) will relax the procedure for lending through PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) to the local government.
The Director General of Fiscal Balance of the Ministry of Finance Astera Primanto Bhakti explained that PT SMI would later become an extension of the Directorate General of Fiscal Balance (“DJPK”) as the channeling of loans to local governments.
He said, the Ministry of Finance had prepared a budget of Rp 10 trillion for the program.
“So far, regional loans through PT SMI whose procedures may take a while now we are doing relaxation, the plan was through us at the DGT, but later the practice will remain at PT SMI,” Prima said in a video conference on Wednesday (7/22 / 2020).
Prima explained, PT SMI would later conduct a due diligence process to the local government that applied for the loan, but the DJPK would direct and oversee the distribution of loans.
Prima also hopes that the loans obtained by the regions can be realized with projects and programs that have been set out in the 2020 APBD. Thus, it is hoped that the economy in the regions can be boosted.
“If there are projects or programs that are good, for example in accordance with the program set by the government, they can submit it to PT SMI. This is our priority as a booster for the regional economy,” he explained.
The Special Staff for Regional Fiscal Policy Formulation Candra Fajri Ananda said, the source of funds from the loan would use Government Securities (SBN) purchased by Bank Indonesia (BI) with a burden sharing scheme.
It is hoped that these loans can be channeled with a simple scheme and lower interest rates from the market.
“In the future, regional loans should be easy to access and rules should not be complicated. The interest rate should be lower than the capital market, so that the regions can access as much as possible,” Candra explained on the same occasion.