Teten Worried That KUR Distribution Will Not Achieve Target Until The End Of 2023

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

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki admitted that he was worried that the distribution of People's Business Credit (KUR) would not reach the target by the end of 2023.

The reason is, based on data from the Program Credit Information System (SIKP), the realization of KUR distribution until November 7, 2023, has only reached Rp. 204.17 trillion or the equivalent of 68.74 percent of the target of Rp. 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.

"I'm not too sure (it will achieve the target by the end of the year)," said Minister Teten after being met at the Local Revolution Event in Jakarta, Friday, November 10.

Minister Teten said there needs to be encouragement from KUR distributors to be able to achieve this target.

"Yes, this is indeed an economic slowdown, yes, in the fourth quarter. Well, the distribution of KUR should be encouraged, yes, because KUR can also be a stimulus in a sluggish economic situation," he said.

Teten thinks that banks should change their distribution scheme from using collateral to applying scoring credit.

"In my opinion, banks must reform their credit disbursement by using credit scoring, and actually the president has asked. The government has strongly agreed with the scoring credit and this, right, must be followed up by the Financial Services Authority (OJK) and Bank Indonesia (BI)," said Teten.

Furthermore, said Teten, banks must immediately change the KUR distribution scheme, so that the target requested by the government can be achieved in 2023.

"I'm not really sure (can achieve the target) if the bank doesn't make changes to distribution," he added.

Previously reported, 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.

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.