Far From The Target, The Realization Of MSME KUR Until August 30 Has Only Been Achieved Rp149.9 Trillion

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki (right). Photo: Theresia Agatha/VOI

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) said that the expansion of access to financing through People's Business Credit (KUR) to MSMEs has only reached Rp. 149.9 trillion from the target of Rp. 460 trillion, to date.

"So, the realization of KUR as of August 30, 2023 is IDR 149.9 trillion from our target of around IDR 460 trillion," said Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki in a Working Meeting with Commission VI DPR RI in Jakarta, on Monday, September 4.

Teteng said that access to KUR financing was still slowing, not only for MSMEs, but overall.

"The expansion of access to financing through KUR, as is known, there is indeed a slowdown in lending, not overall," he said.

Therefore, Teten hoped, the need for an implementation of a credit score system in the distribution of People's Business Credit (KUR) to MSME actors.

"In this case, we understand that the distribution of KUR even though there are regulations without collateral up to Rp100 million, the realization is indeed difficult and we have conducted studies in 145 countries that have implemented credit scoring," said Teten.

"So, no longer using colateral, on average MSMEs do not have assets, so if they are asked for assets as colateral, they can't," he added.

According to Teten, the application of credit scores is much safer for banks.

The reason, he continued, is that the value of assets is not easy to manipulate.

"In my opinion, credit scoring is almost difficult, because this, right, is in the form of transaction data to buyers, suppliers, tax parties, and so on," he concluded.