New KUR Disbursement For Half Of IDR 373 Trillion, SOE Minister Orders State-Owned Banks To Increase Credit Access For MSMEs

Photo: Doc. Coordinating Ministry for the Economy

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir ordered the Association of State-Owned Banks (Himbara) to increase access to people's business credit (KUR) for micro, small and medium enterprises (MSMEs). This is in line with the target given by President Joko Widodo (Jokowi) of 30 percent of funding for MSMEs in 2024.

"The government has provided IDR 373 trillion for the KUR program this year and only 50 percent has been absorbed," he said in an official statement, Wednesday, July 13.

Erick said the funding allocation of IDR 373 trillion was a very large number. Considering that the government provides a subsidy of 13 percent and the portion that goes into the KUR package is three percent.

"The government will also conduct periodic evaluations in the provision of KUR subsidies. This will be adjusted to the state's finances," he said.

Erick said that three ministries, namely the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM), the Ministry of Investment/BKPM, and the Ministry of SOEs were tasked with increasing the absorption of the remaining 50 percent KUR.

Furthermore, Erick explained that the three agreed to link MSME data in each ministry. Erick said he would integrate 12.7 million female customers in the PNM Mekaar program and MSME customers from Himbara banks into the system.

"God willing, if we can combine this, from 1.5 million to 10 million it will not be impossible in the future," said Erick.

Erick emphasized that the absorption of KUR requires collaboration between lines, not only between ministries, but also local governments.

"There is still 50 percent of this amount that must be absorbed, of course we hope that the regional governments, governors, regents, are open to cooperating with us, because we can't be successful if we don't work together," he said.