Kemenkop UKM Prepares KUR Clusters For Meatball Traders To Satai Using Electric Vehicles

Illustration of Electric Motorcycles (Photo: dock. Antara)

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) plans to make a financing scheme using cluster People's Business Credit (KUR) for MSME actors.

This is done in order to attract MSMEs, such as meatball traders, ice cream, and satay traders can use electric vehicles (EV).

"Later, our producers will make a financing scheme because we have a KUR cluster. Later there will be KUR of up to Rp. 500 million, it can be with producers with business associations to get KUR clusters," said Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki at the 2023 EV Expo Inabuyer event at the Smesco Building, Jakarta, quoted Friday, December 1.

Teten said, with the presence of electric vehicles targeting MSME players with the provision of 97 percent of employment opportunities, it could increase the acceleration of electric vehicles in Indonesia, which is still minimal.

According to him, by optimizing the growth of electric vehicles, it will be able to make electric vehicles the second national economy driver after palm oil.

"I don't think this is just a private vehicle, it can be developed. Earlier there was a prototype (prototype) for commercial vehicles, and that's my area, such as meatball traders, ice cream, satay traders can use it. This is an extraordinary development," said Teten.

He said that electric vehicles and their ecosystems will continue to grow in Indonesia. Moreover, in terms of the number of people, which reaches around 270 million people.

In the last three years alone, there have been 58 manufacturers that have produced domestically with a Domestic Component Level (TKDN) of more than 60 percent.

In addition, said Teten, it is necessary to encourage government and individual expenditures to boost sales of electric vehicles themselves. Then, in terms of the production structure, it also involves MSME actors.

Thus, it is possible for MSMEs to be involved in providing EV spare parts.

"I am optimistic that local EV brands can compete with EV brands from outside, because in terms of prices, it must also be much more competitive and quality," he said.

Furthermore, Teten also asked local governments to encourage the use of EVs by making regulations regarding environmental health.

"Of course, regions must make regulations regarding environmental health. So, the use of this EV is driven by local brands through the support of the financing scheme," he added.