Jakarta –
The government, through the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) will trial a People’s Business Credit (KUR) distribution system without collateral or guarantees. The plan is for the KUR value using this credit scoring system to reach IDR 500 million.
Deputy for Micro Business at the Ministry of Cooperatives and SMEs, Yulius, said that the requirements for MSMEs to be able to get KUR without collateral must fulfill several assessments. The assessment in question includes the track record of social security payments such as BPJS, electricity payments, e-commerce transaction payments, activities on social media, and tax data.
“With this credit scoring, we are adding criteria so that if MSMEs have never had access, but they are credit scored, for example their PLN payments are good, they have never been in arrears, their ceiling is good, their track record is good, that is one of the assessments,” he explained, in press conference, at the Kemenkop UKM Office, Friday (19/1/2024).
So, this credit scoring system also helps MSMEs that do not have collateral, or have never had experience in making loans to banks.
“That means MSMEs that have never accessed it cannot, yes, those in remote areas, then of course if they can’t, they will definitely ask for collateral as security,” he explained.
Yulius said the trial would likely be carried out in the middle of this year. Because currently the process is still in the data collection stage to prepare the system for readiness.
“This January we set up, from January, collecting data. From February to April, we build the model that I mentioned earlier, Artificial Intelligence (AI) and Machine Learning and after that we make a score and make the term technical. So there are six possibilities “We can use the pilot project for up to seven months,” he said.
Yulius detailed that there are various benefits of the credit scoring system, including reaching distribution to MSMEs that are unbankable or cannot access bank financing, thereby increasing the expansion of KUR distribution.
Then, it is hoped that this system can optimize loan approvals and keep NPLs at a level accepted by the government, because several research shows that credit scoring which adds alternative data can increase approvals by 10% and reduce the probability of default by 4% compared to assessments that only using conventional data.
“The use of alternative data in credit scoring can also improve credit risk predictions (prediction of default risk) for new customers who have never had access to banking credit,” he concluded.
(there is/das)
2024-01-19 09:41:01
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