Govt Expands Credit Subsidy: What Is the Impact?
The government has expanded the credit subsidy program, initially intended for mortgage loan (KPR) consumers to auto loans (KKB) consumers. The aids expansion is part of the National Economic Recovery (PEN) program amid the COVID-19 pandemic, stated in the Finance Ministerial Regulation (PMK) No. 138/2020, which was published on September 25, 2020.
The regulation mentions that the loan interest subsidies are for bank debtors, financing companies, and state-appointed credit institutions that meet the requirements. The KPR incentives are only for debtors buying type 70 houses and below, while the auto loan incentives are for those working in productive businesses, such as motorcycle taxi drivers, or in informal sectors. The general requirements for potential recipients of loan interest subsidies are as follows:
- Debtors shall have a maximum credit limit of Rp 10 billion.
- Debtors shall have outstanding debts and credits until February 29, 2020, and hold current credit status as of February 29, 2020.
- Bank debtors and finance companies shall own taxpayer-identification numbers (NPWP).
- Debtors are not on the national blacklist for above Rp 50 million credit ceiling.
- Debtors shall receive credit restructuring for having Rp 500 million to Rp 10 billion worth of credits.