Kemenkop UKM Targets KUR Distribution Through Credit Scoring System Valid 2025

Deputy for Micro Business at the Ministry of Cooperatives and SMEs Yulius. (Theresia Agatha/VOI)

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) targets that the distribution of People's Business Credit (KUR) for micro, small and medium enterprises (MSMEs) through credit scoring methods will take effect in Indonesia next year.

Deputy for Micro Business at the Ministry of Cooperatives and SMEs Yulius said that until now his party continues to process to perfect the method.

"This is in the process, yes. Hopefully in a few years it will be finished," Yulius told reporters at the Kemenkop UKM Building, Jakarta, Monday, August 12.

Based on the results of the trials that have been carried out, Yulius considered that this scheme was able to increase the distribution of KUR. In addition, credit scoring also makes the credit scoring ratio rate stuck or non-performing loans (NPL) in a safe position.

"Based on our trial, there is an increase of 5 percent with this technology, the NPL is still between 5-6 percent," he said.

Previously, Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki admitted that he had spoken to the Financial Services Authority (OJK) and Minister of Finance (Menkeu) Sri Mulyani about the credit scoring scheme or credit scoring assessment.

The credit scoring is one of the efforts of the Ministry of Cooperatives and SMEs (Kemenkop UKM) to encourage the integration of the credit scoring model to MSME players. So, it is easier to get access to financing.

"Alhamdulillah, the credit scoring development is good. Yesterday, we spoke with the Minister of Finance, talking with the OJK. And at the OJK, infrastructure or policies are also being prepared that allow credit scoring to be carried out," said Teten when opening the Indonesia Clothing Summit 2024 event at the Smesco Indonesia Building, Jakarta, Thursday, August 1.

Teten did not deny that in practice itself, several banks have started implementing the scheme.

"In practice, banks have also started to use scoring credit. (Even though) it is still on a small scale," he said.

He is very optimistic that with the implementation of credit scoring, MSMEs will get easier access to financing in the future.

"I am optimistic that with credit scoring. This means that there is alternative data outside the historical credit data, it can be more and more MSMEs that actually meet the requirements to receive bank credit," said Teten.