Factsheet: Financing for food and energy crops

Financing for food and energy crops

Key Information
Description: 
In 2007, the Minister of Finance issued a decree (No. 79/PMK.05/2007) which enables smalland medium-size enterprises to obtain subsidised financing for food and energy crops. The decree was issued in order to get national banks to support government projects for food security and biofuel feedstocks such as sugarcane, corn, sorghum and cassava. Loans can be given to farmer groups or cooperatives for the designated commodities. The banks do not charge a credit commission or administrative fees; however, they do impose a commercial interest rate. For its part, the government provides an interest subsidy to farmers or cooperatives for a period of 5 years.
Goal/Aim: 
Stimulate biofuels in transport

Sector/Topic targeted:

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