News Updates 28 July 2020
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SMI Relaxes Local Government Loan Requirements for Economic Recovery

The central government provides loans to local governments in the context of national economic recovery. The distribution of loans through PT Sarana Multi Infrastruktur (Persero) is given to regions that are experiencing co-19 pandemic economic pressures. PT SMI President Director Edwin Syahruzad said that the main condition for the regions to get loans was the impact of the co-19 pandemic. Although almost all regions are affected, PT SMI hopes other regions can also apply for loans. "We hope that other provinces will take part in the regional loan program for national economic recovery," he said in an economic update webinar with the theme 'The Face of the Indonesian Economy in the New Normal Era' in Jakarta, Monday, July 27, 2020. After DKI Jakarta and West Java, currently PT SMI is also coordinating regional lending with the Central Java Province, East Java. In addition, PT SMI hopes to establish a similar collaboration with the South Sulawesi Province. Edwin added, other requirements that must be met by the regions were actually the same as regional loans for regular programs from PT SMI. However, because during the emergency due to the pandemic, PT SMI provided relaxation for regional loans in the context of national economic recovery. "In the process there is relaxation and simplification, for example related to the approval of the DPRD which in the regular loans is a requirement that must be fulfilled in the future. However, specifically related to regional loans for national economic recovery, it is enough with a notice within 5 days after the letter submitted to the Ministry of Finance can be considered approved by us so that the region can be accounted to the DPRD related to the revised APBD as a result of additional loans that are an element of financing in the APBD-Amendment, "he explained. In addition, if the loan is usually a feasibility study (feasibility study) must be included in the front, but in the loan for national economic recovery, the local government is sufficient to include a framework of reference that the project does exist in the APBD. "So simplification and relaxation of our approval process that is easier and faster is expected to accelerate disbursement because the main objective is to accelerate economic recovery and move the real sector. This is what we hope this loan can restore projects that are constrained by funding sources in the APBD," he concluded. At this initial stage, the DKI Jakarta Provincial Government proposed a loan of IDR 12.5 trillion, consisting of IDR 4.5 trillion for this year and IDR 8 trillion for next year. While the West Java Provincial Government submitted a loan of Rp4 trillion consisting of Rp1.9 trillion in 2020 and Rp2.09 trillion in 2021. The funds channeled are funds from the central government budget of IDR 10 trillion in the State Budget (APBN). In addition, PT SMI also prepared additional funds of Rp5 trillion for local government loans. Source: medcom.id
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