The realization of a fairly high KUR distribution indicates that the MSME economy has started to move
Jakarta (ANTARA) – The government continues to maximize the distribution of People’s Business Credit (KUR) to increase the productivity of Micro, Small and Medium Enterprises (MSMEs).
This is expected to encourage MSMEs to move up the class and go digital, and contribute to Indonesia’s economic recovery.
“The government continues to boost KUR distribution to increase MSME productivity so as to strengthen the people’s economy. Effective KUR distribution is the key to continue to support Indonesian MSMEs in carrying out business activities and increasing digitalization so that they can advance to class,” said Minister of Communication and Information Johnny G. Plate in his statement. , in Jakarta, Tuesday.
As of September 13, 2021, KUR distribution has reached IDR 179.54 trillion or 63 percent of the 2021 target of IDR 285 trillion. The number of debtors receiving KUR has reached 4.77 million debtors.
Furthermore, Jhonny explained that the realization of the disbursement of KUR which was quite high indicated that the MSME economy had started to move.
Moreover, he said, if you look at the level non–performing loan (NPL) which is below 1 percent (or to be precise 0.99 percent). “This means that the economic ability to pay debtors is very good in line with their business activities,” he said.
In accordance with the direction of President Joko Widodo, he stated that the distribution of KUR was now increased with an additional KUR interest subsidy of 3 percent until the end of 2021.
This policy was followed by the postponement of KUR principal installments, relaxation of the extension of the maturity period, and the addition of a ceiling limit for KUR recipients affected by the COVID-19 pandemic.
Jhonny said this step was taken to provide convenience and a big leap for MSMEs to strengthen their capital.
“Various relaxations are also given to make it easier for MSME actors to maintain their business in the midst of a pandemic,” he said.
In the future, said the Minister of Communication and Informatics, the government will continue to coordinate with various parties from upstream to downstream to increase the effectiveness of KUR distribution. And, it is followed by continuous coaching to improve the digital capabilities of MSMEs.
Also read: KUR realization reached Rp176.92 trillion as of September 6, 2021
Also read: Coordinating Minister for the Economy asks governors and mayors to encourage KUR growth
Reporter: M Baqir Idrus Alatas
Editor: Royke Sinaga
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