Good News From Coordinating Minister Airlangga: Government Promises Ease Of KUR Terms Next Year

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said that the government decided to make a number of easing requirements for small business actors in applying for People's Business Credit (KUR).

According to him, this step is intended to further increase productive activities as well as encourage economic growth.

"KUR is needed to accelerate economic recovery during the COVID-19 pandemic, so it is necessary to increase the KUR ceiling and facilitate KUR requirements," he said in a press statement, Wednesday, December 29.

Airlangga added, in the Coordination Meeting of the Financing Policy Committee for MSMEs, it was decided that the KUR ceiling for the 2022 period was increased to Rp373.17 trillion with a fixed KUR interest rate of 6 percent.

"Considering the trend of decreasing cost of funds and increasing the efficiency of over head cost (OHC) KUR interest rates, the government also reduced the 2022 KUR interest subsidy for Super Micro KUR by 1 percent, Micro KUR down 0.5 percent, and PMI KUR down 0, 5 percent," he said.

Furthermore, he revealed several changes to the KUR policy, including changes to the Micro KUR ceiling (without additional collateral) which was previously above Rp10 million to Rp50 million to be above Rp10 million to Rp100 million.

Then, changes to the Special/Cluster KUR without limiting the accumulation of the KUR ceiling for the production (non-trade) sector, changes to the KUR policy for the Placement of Indonesian Migrant Workers (PMI), including the adjustment of the PMI Placement KUR ceiling from a maximum of Rp25 million to a maximum of Rp100 million, as well as changes and extensions of policy relaxation. KUR during the pandemic.

Then, the provision of further incentives in the form of extension of KUR restructuring, granting of administrative relaxation for prospective KUR debtors based on the objective assessment of KUR distributors.

"Through changes to the KUR policy, the government shows great attention to MSMEs by providing easier and more affordable KUR requirements so that MSMEs can optimize their role as drivers of the national economy," Airlangga concluded.