Coordinating Minister For SMEs Calls MSME Traffic Credit Rules Deleted Still Waiting For The Ministry Of Finance

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said, the rules regarding the abolition of MSME bad loans are still under study.

"(The rules) are being studied again. Government Regulations (PP) and the Ministry of Finance are being prepared," Teten told reporters at the Kemenkop UKM Building, Jakarta, Monday, August 14.

Teten explained that the elimination of the first phase of bad credit for people's business credit debtors with a maximum value of Rp. 500 million had been deleted, but had not been collected and had been borne by Indonesian Credit Insurance (Jamkrindo) and Indonesian Credit Insurance (Askrindo).

"For a total of Rp. 500 million, Himbara's bank is around Rp. 22 trillion," he said.

According to Teten, if it has been abolished, it will be able to accelerate bank credit, including MSMEs that do not get obstacles to asking for financing.

"We have known since the fourth quarter of last year, right, there has been a slowdown in the distribution of bank credit, including to MSMEs. Well, I think this is one of the reasons to answer that problem (disruption of bad credit)," he said.

Furthermore, Teten said, the rules regarding the abolition of bad credit could be completed in the next one to two months. "(The government's target) should have been completed in 1-2 months," he concluded.

For your information, President Joko Widodo (Jokowi) will abolish MSME bad credit. This has been stated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK).