Until November 2023, New KUR Distribution Reaches IDR 229.95 Trillion Or 77 Percent Of The Target

Illustration (Photo: Doc. Antara)

JAKARTA - The government continues to strengthen MSME financing through the distribution of People's Business Credit (KUR) so that the KUR distribution target is IDR 297 trillion in 2023.

As for November 30, 2023, KUR has been distributed for IDR 229.95 trillion or 77.42 percent of the 2023 target, to as many as 4.12 million debtors.

Deputy for Macroeconomic and Financial Coordination of the Coordinating Ministry for Economic Affairs Ferry Irawan said various strategies were carried out by the government in order to accelerate the distribution of KUR to strengthen the role of MSMEs in encouraging economic growth and employment.

Meanwhile, the extra effort to accelerate the distribution of KUR is outlined in various policy strategies such as the implementation of weekend banking by taking into account the conditions of each KUR distributor,

In addition, Ferry conveyed that the government is also monitoring and evaluating the distribution of KUR, opening KUR distribution options with various stakeholders, relaxing regulations related to the distribution of KUR.

Ferry added that the government also encourages the acceleration of the implementation of Alsintan Business Credit (KUA), as well as encouraging the optimization of the role of local governments in the KUR ecosystem.

According to Ferry, the distribution of KUR in 2023 will not only focus on the quantity side, but also pay attention to the quality side.

This is reflected in the non-performing level of KUR loans which are still relatively well maintained at 2.03 percent as of October 30, 2023, and the total new debtors KUR as many as 1.92 million debtors or 70 percent of the total KUR debtors as many as 2.7 million debtors.

Furthermore, the number of KUR debtors is 1.4 million debtors or 53.6 percent of the total KUR debtors as of August 31, 2023.

For 2024, said Ferry, several changes to the 2024 KUR policy were made in order to emphasize several provisions that apply to the 2023 KUR distribution policy.

Among other things, such as provisions related to the participation of KUR debtors in the employment social protection program, repeated KUR access for KUR debtors in the agricultural sector, and definition of credit that is excluded to regain KUR access.

In 2024, the government will continue the distribution of KUR which not only prioritizes quantity, but also prioritizes quality.

In addition, the government has prepared a subsidy budget for the distribution of KUR in 2024 of IDR 47.78 trillion which will be used to pay interest subsidies/subsidies for the KUR margin for the current year and payment of carry over interest subsidies/subsidies for the KUR margin in the previous period.

In line with efforts to optimize KUR distribution. The Program Credit Information System (SIKP), which is one of the important pillars in the distribution of KUR, continues to be updated.

It is planned that in 2024, several features contained in SIKP will be improved, such as the addition of dataset requirement data, updating subsidy calculations, and sending debtor transactions every month.

"The government hopes that this activity can increase the collaboration and synergy of all KUR stakeholders, both from the side of the Central Government, Regional Governments, KUR distributors, and KUR guarantors. Synergy and collaboration of each KUR stakeholder is needed so that the acceleration of KUR distribution can be carried out," said Assistant Deputy for Capital Markets and Financial Institutions Gede Adi Prasetya.