Realization Of People's Business Credit Distribution Has Reached IDR 207.7 Trillion

JAKARTA - The Ministry of Finance recorded the realization of the distribution of People's Business Credit (KUR) until November 10, 2023 amounting to IDR 207.7 trillion and has been distributed to more than 3.7 million debtors.

Citing the official Instagram account post of the Ministry of Finance, namely @kemenkeuri, the realization of KUR distribution until November 10, 2023 has only reached 69.9 percent of the 2023 target of IDR 297 trillion.

Meanwhile, the realization of KUR in 2023 was the largest distributed to the trade sector by 44.2 percent, agriculture by 30.9 percent, services by 15.7 percent, the processing industry by 7.3 percent, and the construction sector by 0.3 percent.

"#Our money also supports the development of MSMEs in Indonesia through the provision of interest subsidies and the acceleration of the realization of People's Business Credit (KUR)," wrote the post, Friday, November 17.

The distribution of KUR is an effort by the government to encourage MSMEs to advance to class.

This is because MSMEs make a big contribution to the economy by contributing 61 percent of gross domestic product (GDP).

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said that positive growth in the Indonesian economy was supported by one of the distribution of MSME loans which recorded strong growth of 8.9 percent (yoy) in August 2023.

Meanwhile, the contribution of MSMEs is quite high to GDP, which reaches 61 percent with the ability to absorb 97 percent of the total national workforce absorption.

In addition, total investment in the MSME sector reaches 60 percent of the total national investment and its contribution to national non-oil and gas exports is also able to reach 16 percent.

"Paying attention to the importance of the role of MSMEs, the Government continues to encourage access to financing by increasing MSME credit shares, which in August 2023 is still 23.2 percent of total credit, so that it can reach 30 percent of national credit by 2024," said Airlangga in his statement, Friday, November 17.

Airlangga conveyed that in terms of strengthening MSME financing, one of the important instruments for increasing national MSME loans is People's Business Credit (KUR) where the Government provides interest subsidies so that the interest rate/KUR margin can be low and the requirements for additional KUR collateral are also facilitated.

Even as a form of support for empowering MSMEs, additional collateral for KUR up to Rp100 million is no longer needed.

Airlangga said the government also continues to encourage the distribution of KUR so that it is on target and is of higher quality.

In terms of quantity, the total distribution of KUR as of November 6, 2023 was recorded at IDR 204.17 trillion or 68.74 percent of the 2023 target of IDR 297 trillion and has been given to 3.67 million debtors.