Proof Of The State's Support For MSMEs: Disburse Rp24 Trillion For KUR Interest Subsidy

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani stated that the 2022 State Budget continues to show partiality to the micro, small and medium enterprise (MSME) sector through a commitment to providing bank interest subsidies.

According to the Minister of Finance, MSME actors only need to pay a very small return if they receive financing under the People's Business Credit (KUR) scheme.

“Small businesses that borrow from banks under KUR only pay interest rates, including sharia, the burden is very minimal,” she said when giving a keynote speech at the agenda of The 1'st International Conference on Women and Sharia Community Empowerment, Thursday, August 11 .

The Minister of Finance added that the sloping interest rate could not be separated from the government's intervention through the allocation of a large amount of APBN funds.

"The government provides an extraordinary amount of interest subsidies, which can reach Rp. 24 trillion," he said.

Citing data reported by the Coordinating Ministry for the Economy, until the end of July 2022, the value of KUR that has been disbursed is IDR 209 trillion to 4.4 million debtors. Meanwhile, the target for distributing People's Business Credit for this year is expected to reach Rp373.1 trillion.

"So MSMEs can use KUR as business capital and the government reduces the burden on MSMEs in the form of interest subsidies," said Minister of Finance Sri Mulyani.

To note, the KUR interest rate should be at the level of 6 percent per year for each approved credit application.

However, the government implements a policy of providing an interest subsidy of 3 percent, so that debtors only need to pay 3 percent interest every year. This rule is valid until December 31, 2022.