Support Priority Program, Government Prepares Strategic Policy Steps For KUR Distribution

Illustration (Photo: Doc Antara)

JAKARTA - The government has revealed that it has prepared strategic policy steps in order to optimize the distribution of People's Business Credit (KUR) in supporting President Prabowo Subianto's priority programs.

Deputy for Macroeconomic and Financial Coordination Ferry Irawan conveyed that regarding the distribution of KUR, the government will use it for food security, free nutritious food, housing and energy security.

In food security, Ferry explained that the government's KUR distribution also has priority programs for food security such as the agricultural, livestock, fishermen and the provision of foodstuffs.

Meanwhile, historically around 30 percent of KUR has been distributed and used for the agricultural sector, Ferry also hopes that the KUR program can support other sectors such as the food and housing processing industry. For the agricultural sector, we have opened access to KUR without restrictions for farmers with land under 2 hectares

"For farmers, farmers, fishermen, and other productive businesses in the food sector. So this is what we also hope for, we hope that fellow distributors and guarantors can also support this with this. By maintaining distribution to sectors that are the priority of the government, especially food security," he said at the Press Conference to One KUR Decade, Wednesday, November 13.

Ferry said that the government's Free Nutrition Food (MBG) program is paying attention to financing aspects such as supporting purchases for productive business actors in the supply sector, monitoring food and beverages through micro KUR and small KUR.

"Others, for example, when we talk about food or foodstuffs, we will definitely talk about farmers, breeders, fishermen, yes. We hope that those who play a role as raw material providers from this nutritious meal can also be supported with various schemes in KUR, special KUR, micro KUR and small KUR, yes," he said.

Furthermore, in the context of food self-sufficiency, Ferry said that the government has exempted access to Micro KUR and fixed interest rates of 6 percent to Indonesian farmers have a land area of under 2 hectares so that it can increase food and agricultural production.

"Now, in the context of achieving food self-sufficiency in the latest Permenko KUR, we have given affirmations to our farmers whose land is under 2 hectares to be able to access without KUR restrictions, the KUR scheme is like that," he said.

As for the housing or infrastructure program, Ferry said that his party plans to expand connectivity with support for Micro KUR and Small KUR financing.

"We also hope that the existing scheme can be supported by a KUR distribution scheme. For example, one of the new developers uses a small KUR, yes, for the development of a house, maybe what we can also design later is an ecosystem-based KUR for the housing sector," he explained.

"So this could accommodate more housing needs, which if we look at what the government sees is as high as above about 3 million houses," he added.

Furthermore, for the downstream program and industrialization based on natural resources and energy security achievements. Ferry conveyed that KUR also supports the development of people's plantations, people's tennis, people's fisheries, tourism clusters or other productivity commodities.