Bank Mandiri, one of Indonesia’s largest banks, plans to assist young entrepreneurs of different sectors by offering financing and loans, media reports said. The development is a part of the country’s economic revival plan on the back of the Covid-19 pandemic. The facility will be available through the bank’s entrepreneurship program.
Diwangkoro Ratam, Bank Mandiri’s head of corporate social responsibility, told the media, “The Wirausaha Muda Mandiri competition was open for entrepreneurs aged between 18 and 35 years old with businesses from various sectors such as the culinary arts, creative industry, technology, and trade and services. The competition would be conducted virtually until Oct. 30 to comply with COVID-19 protocols.”
Previously, the Indonesia government announced the Mandiri Young Entrepreneur competition. In addition, the loans and financing will be provided by the publicly listed bank to the participants of the competition. The winners of the competition will receive prizes worth Rp 2 billion.
The competition’s business plan will enable aspiring entrepreneurs to understand the process of starting a new business.
Furthermore, the ideas are expected to boost Indonesia’s economic revival.
The Indonesian government has announced a stimulus package worth $8.35 billion for MSMEs. The package includes banking fund placements for faster working capital loan disbursal, cash transfer and subsidy loan interests.
In the second quarter, Indonesia’s economy contracted 5.32 percent annually, marking the worst result since 1999 as the pandemic has affected businesses at large. MSMEs are the most affected by the pandemic, accounting for 62 percent of the country’s GDP.