As a form of support for MSMEs, the government provides People’s Business Credit (KUR). The KUR is given to productive MSMEs that are feasible but unbankable. The government also provides interest subsidies/margin subsidies to KUR debtors which includes credit guarantees, so that people can access credit easily and cheaply.
Distribution of credit to the public has become one of the government’s instruments in maintaining national economic growth. The prospects for the national economy reflected in the performance of banking lending, which was able to grow by 11. (www.cookwarejunkies.com) 35% (yoy), followed by the maintained level of Non-Performing Loans (NPL) of 2.44% in December 2022. This achievement is higher than the average credit growth for the 5 years before the pandemic, which was 8.9%.
The Super Micro KUR scheme is optimized for distribution to workers affected by layoffs and housewives who run productive businesses. In 2023, the government will also reduce the Super Micro KUR interest rate/margin to 3%.
The Coordinating Minister for the Economy Airlangga Hartarto said, “The government has lowered the Super Micro KUR interest rate to 3% to deal with the risk of stagflation and to take sides with laid-off workers and housewives who run productive businesses.”
Prospective debtors are also facilitated by giving proof that they have attended training or assistance from families who already have businesses. KUR Super Micro has a maximum loan ceiling of IDR 10 million and is only given to prospective borrowers who have never accessed KUR financing.
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In 2023, the KUR distribution target is set at IDR 450 trillion or adjusted to the adequacy of the budget in the 2023 State Budget accompanied by the addition of a target of new KUR debtors of at least 1.76 million debtors and a target of KUR graduate debtors of at least 2.36 million debtors. This activity is expected to actually encourage MSMEs in Indonesia so that they can develop and upgrade through easy and inexpensive access to financing.
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said that the government continues to encourage an increase in the portion of MSME loans to bank loans in accordance with our provisions and policies to a minimum of 30% in 2024.
The government hoped this program will accelerate the creation of new businesses in the MSME sector, and be able to reduce poverty and unemployment rates. The government will continue to encourage Indonesia’s younger generation to be able to take advantage of the government’s financing scheme, especially the Super Micro KUR.
Source: ekon.go.id (press-release)
