KUR Subsidy Value As Of January 2023 Capai IDR 10.7 Trillion

Illustration (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani revealed that the government has disbursed Rp. 10.7 trillion in state budget funds as a subsidy for interest on People's Business Credit (KUR) in January 2023.

According to him, the budget is channeled as central government spending through non-ministerial/institutional (K/L).

"So small and medium-sized people get credit at this low-interest rate because the state budget spends IDR 10.7 trillion in subsidies so that they do not experience an increase in loan interest rates," said the Minister of Finance, quoted on Thursday, February 23.

He explained that the allocation of KUR subsidies was part of the social protection budget (perlinsos) which until last month had been absorbed was IDR 14.6 trillion.

"In addition to the KUR subsidy, other social protection spending is the distribution of social assistance in disaster areas and also tuition assistance through the Ministry of Religion amounting to Rp3.9 trillion," he said.

For information, the realization of the social welfare budget is greater than the 2021 period, which at that time was recorded at IDR 13.7 trillion.

"This social protection budget absorption is higher than food security of Rp900 billion and the health budget with absorption of Rp5.3 trillion," he said.

To note, the government has increased the target of disbursing people's business loans (KUR) in 2023 to IDR 460 trillion. This number increased 23.3 percent from 2022 which amounted to IDR 373 trillion.

Meanwhile, until January 2023, the total state expenditure was recorded at IDR 141.4 trillion, or around 4.6 percent of the APBN ceiling, which was IDR 3,061.2 trillion.

This state expenditure is distributed into two major categories, namely central expenditure and transfer to the regions (TKD). For, central expenditure is absorbed IDR 83.2 trillion, with details of K/L spending of IDR 28.7 trillion, and non-K/L expenditure of IDR 54.5 percent. Meanwhile, TKD is said to be IDR 58.2 trillion.