Kemenkop UKM Will Accelerate The Distribution Of KUR 2023 To Maintain Economic Growth

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki. (Photo: Theresia Agatha/VOI)

JAKARTA - The government through the Ministry of Cooperatives and SMEs (Kemenkop UKM) will accelerate the distribution of People's Business Credit (KUR) as an effort to maintain the pace of economic growth targets that had slowed down.

"In the next two months, we will try to achieve the economic growth target, in which the government will rely on fiscal stimulus, one of which is by accelerating the distribution of KUR," said Minister Teten in a written statement received by VOI, Tuesday, November 7.

Teten revealed, there are a number of strategies carried out, including carrying out monitoring and evaluation to encourage KUR distributors whose absorption is still low, so that they can ensure that the KUR distribution target can be achieved according to the commitment set.

The government, he said, also opened the synergy option for KUR distribution with policies between other ministries/agencies.

"The government is trying to relax regulations that still cause unclear implementation in the field," he said.

On the other hand, the Kemenkop UKM also encourages the acceleration of the implementation of Alsintan Business Credit (KUA) to encourage the efficiency of lending/financing in the agricultural sector.

"This is supported by the optimization of local governments to upload data on prospective new KUR debtors and cooperate with KUR distributors to the Program Credit Information System (SIKP), as well as encourage KUR distributors to carry out extra efforts through the implementation of weekend banking in KUR distribution," said Teten.

Based on SIKP data, the realization of KUR distribution until November 7, 2023 reached IDR 204.17 trillion or the equivalent of 68.74 percent of the target of IDR 297 trillion to 3.18 million debtors.

The realization is still low considering that it is currently entering its second week of November 2023.

So that the distributor must pursue a target of around Rp92.82 trillion in less than two months.

The Central Statistics Agency (BPS) noted that Indonesia's economic growth in the third quarter of 2023 reached 4.94 percent or less than 5 percent on an annual basis or year on year (yoy).

BPS assessed that the cause of the sluggish economy in the third quarter of 2023 was due to contraction in government consumption.

It was noted that the government's consumption contracted 3.76 percent with a distribution of 7.16 percent.

It is known, the cause of the contraction in government consumption is due to a decrease in personnel spending, goods expenditure, and social assistance spending.

There was also a shift in the disbursement of the 13th salary of the State Civil Apparatus (ASN), from what is usually in the third quarter to the second quarter.