Coordinating Minister Airlangga: Expanding Access To Micro, Small And Medium Enterprises (SMEs) Financing Is Evidence Of The Government's Partiality

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

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said that the government is committed to continuing to advance the micro, small and medium enterprise (MSME) sector throughout 2022. According to him, this is reflected in the incorrect allocation of National Economic Recovery (PEN) funds. one targeting the MSME sector.

"This is a form of the government's partiality and support for the MSME sector which has been greatly affected during the pandemic," he said in an official statement quoted on Friday, February 11.

Meanwhile, the implementation is carried out in the form of providing credit restructuring to reduce the burden on debtors.

"The government also encourages the expansion of access to financing for MSMEs through the macroprudential inclusive financing ratio, so that the portion of MSME credit is increased by 20 percent in 2022 and gradually to 30 percent in 2024," he said.

Furthermore, the outline of partisanship can also be seen from the strategy to form a holding for ultra microfinance SOEs (UMi). Through this method, PT Bank Rakyat Indonesia Tbk. (BRI) is the holding company that combines the main entities and is expected to better develop the ultra micro segment with a target of adding 29 million business players in 2024.

For information, Coordinating Minister Airlangga himself is the Chair of the Financing Policy Committee for MSMEs whose task is to encourage the development of the People's Business Credit (KUR) program.

This KUR gets an interest subsidy facility of 3 percent until June 30, 2022, where the government also increases the KUR ceiling by 30 percent to IDR 373.17 trillion for this year.

"The steps taken are a manifestation of the government's presence to help MSMEs access affordable business financing through KUR," said Airlangga.

To note, until February 7, 2022, KUR has been realized in the amount of Rp. 25.94 trillion or 6.95 percent of the target. Meanwhile, the target number of debtors is expected to reach 650,000 customers by the end of the year.

The distribution of credit and financing is also claimed to have a good record with the ratio of non-performing loans (NPL) maintained at the level of 0.98 percent.

"Through solid synergy, it is hoped that MSMEs can help accelerate Indonesia's economic recovery for the better or even beyond the pre-pandemic period. May all of our good intentions be blessed by Allah SWT," concluded Coordinating Minister Airlangga.