Government Provides KUR Relief for Debtors Affected by Disaster in Sumatra
JAKARTA - The government will provide relief for borrowers of the People's Credit for Business (KUR) who are affected by disasters in Aceh, North Sumatra, and West Sumatra through various schemes, ranging from credit restructuring to debt cancellation.
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Coordinating Minister for the Economy Airlangga Hartarto emphasized that the elimination of bills for KUR debtors affected by disasters in Sumatra would not use additional funds from the State Budget (APBN), but would utilize an existing scheme, namely KUR interest subsidies.
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"No (use the state budget). Later we will see that we have a total interest subsidy. Well, it will be calculated from there," he told the media, Friday, December 12.
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Airlangga explained that this interest subsidy is a long-term policy, in which the state bears the difference in commercial bank interest so that debtors only pay a lower interest rate.
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He added that this policy is planned to last for several years. "And this is long-term. The program for the next year, the second year and so on," he added.
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Previously, Airlangga said that around 141,000 KUR debtors were affected by disasters in Aceh, North Sumatra, and West Sumatra, with a total balance of debits estimated at Rp7.8 trillion and of that amount, 63,000 debtors come from the agricultural sector with a balance of debits of around Rp3.5 trillion.
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"Of the 996,000 KUR debtors in the three provinces, it is estimated that 141,000 (debtors) with a balance of approximately Rp7.8 trillion. Well, it is predicted to be affected, including more than 63,000 kur debtors in the agricultural sector with a debt of Rp3.57 trillion," he said.
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He added that the government is preparing special regulations to provide relief for debtors, through debt cancellation, credit restructuring, to the distribution of new KUR with low interest rates.
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"Where KUR in disaster areas will immediately make regulations which of course start from the completion of the book clearing and also restart KUR with lower interest rates, especially in the affected areas," he explained.
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Airlangga said this policy also aims to provide space for KUR debtors while preventing an increase in collateral claims and the Financial Services Authority (OJK) will prepare supporting regulations to maintain stability while encouraging economic recovery in the affected areas.
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"This policy is primarily to provide space for KUR debtors and then also prevent there being an increase in collateral claims. OJK will also make regulations for that and also to maintain stability and encourage restart rather than the economy in the affected areas and of course all of that will be done immediately after the emergency response and recovery of infrastructure in the affected areas," he said.
"During the recovery period, the debtor will receive relief in the form of zero percent interest, book deletion, restructuring and after the recovery period, new KUR will be disbursed with a low interest of 3 percent.
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During the recovery period, the debtor will receive relief in the form of zero percent interest, book deletion, restructuring and after the recovery period, new KUR will be disbursed with a low interest of 3 percent.
"Everything is easier because in fact they will be given the convenience of not paying installments in the disaster year. Then the interest will also be paid. In the future, we will restart with a lower interest of 3 percent," he said.