Jakarta, CNBC Indonesia – Vice presidential candidate (cawapres) Gibran Rakabuming Raka promises a Millennial Startup Credit program.
However, most startups actually get business capital from investors, not from bank loans like most new businesses. What is the reason?
Treasurer of the Indonesian Venture Capital Association for Indonesian Startups (Amvesindo) Edward Ismawan Chamdani said that startups in the eyes of banks are still not “bankable”. This is because the average startup is still new and initial transactions are still small or unstable.
Edward said that credit for startups is not necessarily appropriate for their capital needs, most of which are not disbursed to directly gain income.
“Most of it is used for product development, marketing and employee and management costs,” said Edward to CNBC Indonesia, quoted Wednesday (1/11/2023)
He suggested that giving credit to startups should be adjusted to the certainty of income. This can be done in the form of an invoice from a prospective customer or a balance sheet that is good enough to justify repayment within the loan period.
Gibran said that the government has provided a lot of People’s Business Credit for micro and ultra-micro businesses. He wants to present a new type of credit facility, namely millennial startup credit.
He explained the program during the declaration of the Prabowo Subianto-Gibran Rakabuming Raka pair in the Gelora Bung Karno area, Jakarta, Wednesday (25/10).
The eldest son of President Joko Widodo said that start-up company credit was aimed at millennials. Its business sector is focused on innovation and technology-based start-up companies. He has not explained in more detail about the program
[Gambas:Video CNBC]
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