Airlangga: Government Prepares IDR 11.9 Trillion To Extend People's Business Credit Subsidy Until December 2022

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

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the government had decided to extend the additional interest subsidy for People's Business Credit (KUR) by 3 percent for 6 months.

Previously, the KUR interest subsidy was in effect until June 2022. After being extended, the government will subsidize the KUR interest until December 31, 2022.

"This is to accelerate the recovery of MSMEs in Indonesia. Regarding the budget requirement for an additional extension of the 3 percent KUR Interest Subsidy for 6 months (July to December 2022) of IDR 6.33 trillion, the total budget requirement is IDR 11.97 trillion," said the Coordinating Minister. Airlangga, in an official statement, quoted Tuesday, March 8.

Based on data, the distribution of KUR in 2021 will increase by 42 percent to IDR 281.9 trillion. The total debtors are 7.38 million people and the ratio of bad loans (NPL) is 0.98 percent. Airlangga added, the government will also continue the Cash Assistance Program for street vendors, stalls, and fishermen in 2022.

This year, assistance worth Rp600 thousand per person will be given to 2.76 million recipients. Namely, 1 million for street vendors and stalls, and 1.76 million for fishermen throughout Indonesia.

The distribution will be made in cash by officers from the National Armed Forces (TNI)/National Police (POLRI), with locations in 212 regencies/cities that are the priority for the 2022 Extreme Poverty Alleviation Program.

Meanwhile, while giving a press statement after the Virtual Limited Meeting on Community Activity Restrictions (PPKM) Evaluation, Monday, March 7, Coordinating Minister Airlangga stated that the development of daily cases and active cases of COVID-19 outside Java-Bali had a downward trend following those in Java-Bali. Outside Java-Bali, daily confirmed cases reached their peak on February 23, 2022, which reached 19.807 cases. And as of March 6, 2022, it has dropped to 8.158 cases.

As for active cases, it peaked on March 3, 2022, which reached 183.482 cases, and as of March 6, it became 171.338 cases.

"The government continues to monitor the condition of the development of Covid-19 in every Regency/City and Province. Outside Java-Bali has started to decline, both daily cases and active cases. However, we remain vigilant and continue to increase control efforts, by continuing to encourage accelerated vaccination and implementation," said Coordinating Minister Airlangga.

Coordinating Minister Airlangga also revealed that although the number of cases was relatively high for some areas, the level of care in hospitals was still relatively low. According to him, the data shows it is much lower than when handling the Delta variant last year.

The chairman of the Golkar Party admitted that there were still three provinces with the highest active cases of more than 15.000. However, the Bed Occupancy Ratio (BOR) is still under control. The three highest provinces are North Sumatra with 21.338 active cases, 37 percent BOR, and 21 percent Covid TT conversion.

East Kalimantan with 15.603 active cases, 44 percent BOR and 25 percent conversion, and South Sulawesi with 15.131 active cases, 31 percent BOR and 18 percent conversion.

Although relatively high in the three provinces, it decreased significantly compared to the previous weeks. Airlangga emphasized that the government was prepared to anticipate any bad possibilities by preparing integrated isolation facilities.

"Currently, 36.470 Isoter beds are available, but only about 3.841 TT (BOR = 10.53 percent) are filled. The area currently has a high enough Isoter capacity, namely East Kalimantan Province (BOR = 49.10 percent) and the Riau Islands (BOR = 33.75 percent), we will continue to monitor it," said Coordinating Minister Airlangga.