Coordinating Minister for SMEs Reveals There Is Still KUR Wrong Target: Wrong Bank!

Jakarta –

Minister of Cooperatives and SMEs Teten Masduki said there was still distribution of People’s Business Credit (WHERE) not on target. According to Teten, this happened because those who distributed KUR to individuals were not for business development purposes.

Teten said he had suspected this for a long time. The reason is, the Ministry of Cooperatives and SMEs (KemenKop UKM) found that the number of KUR recipients has not increased even though the amount of KUR disbursed continues to increase.

“It’s the bank’s fault,” said Teten, met at the DPR RI Complex, Senayan, Jakarta, Thursday (23/11/2023).

“It was just the bank that distributed it incorrectly. And that is what we have suspected for a long time, why MSMEs receiving KUR have not increased significantly even though we continue to increase the amount of KUR,” he continued.

According to him, many banks ultimately seek safety by distributing KUR to individuals so that it is used for consumptive purposes. In fact, the aim of KUR itself is to encourage the productivity of MSMEs.

“For example, to people who use credit cards. Not for the government, KUR is for MSME needs to get working capital,” he explained.

Thus, it is clear that KUR distribution is not on target. According to him, this is a deviation and the ‘naughty’ banks must be dealt with immediately.

“If it turns out that it was given not to MSMEs but to individual people, for consumption, that means it is a violation. The bank must take action against it,” he stressed.

The issue of KUR not being on target was initially raised by Member of Commission VI DPR RI from the PKS Fraction, Nevi Zuairina, at a Working Meeting with the Minister of Cooperatives and SMEs today. He asked Teten to tighten supervision of KUR distribution. This follows the discovery of the large number of uses of KUR for consumptive activities.

“Many uses of KUR funds in implementation in the field are not in accordance with their intended use. Some are for buying vehicles, building houses, for consumption, sir. In 2023, it is set that the amount of KUR to the community will reach IDR 440 trillion. If it is not monitored closely, this large amount of funds will will evaporate and be detrimental to the country,” he said today.

As additional information, last September, Teten reported a slowdown in overall credit distribution, including KUR for MSMEs. In this case, the realization is still far from the target.

“So the realization of KUR as of August 30 2023 is around IDR 149.9 trillion, from our target of around IDR 460 trillion,” he said, at a Working Meeting (Raker) with Commission VI and the Minister of BKPM, in Senayan, Jakarta, Monday (4/9/ 2023).

(shc/hns)