The Ministry Of Cooperatives Gives KUR Access To Migrant Workers Via Cooperatives

Deputy Minister of Cooperatives (Wamenkop) Ferry Juliantono. (Photo: ANTARA)

The Ministry of Cooperatives (Kemenkop) together with the Ministry of Migrant Workers Protection continue to strengthen efforts to protect and empower Indonesian migrant workers in terms of capital.

"We are together looking for solutions for capital needs for migrant workers who will go abroad, as well as when they return to Indonesia after working abroad," said Deputy Minister of Cooperatives (Wamenkop) Ferry Juliantono in a meeting with Deputy Minister of Migrant Workers Protection (Wamen P2MI) Christina Aryani quoted Friday, December 6.

Ferry said that the need for capital is a major problem for Indonesian migrant workers who will start working abroad.

"Financing starts from processing documents, training, lodging, and so on. Therefore, the Ministry of P2MI is also met with LPDB-KUMKM," he said.

He added, with access to capital from LPDB-KUMKM, migrant worker cooperatives can also be a forum for economic empowerment for their members

On the same occasion, Deputy Minister of P2MI Christina Aryani said that so far Indonesian migrant workers have had difficulty accessing capital to banks.

Access to People's Business Credit (KUR) has also not been able to answer the capital needs of migrant workers before working abroad.

"It was recorded that from 2007 to 2024, there were 5 million migrant workers stationed abroad. Most of them came from East Java, Central Java, West Java, West Nusa Tenggara, and Lampung," said Christina.

He explained that the Indonesian migrant workers had difficulties accessing capital to banks, especially through KUR.

Meanwhile, they need a lot of funds for departure and placement, including to fulfill documents, training, and so on.

"Therefore, through the support from the Ministry of Cooperatives, it is hoped that it can provide alternative financing solutions through LPDB-KUMKM for migrant workers," said Christina.

Christina hopes that LPDB-KUMKM can also directly support the cooperatives of migrant workers who have met the requirements, including cooperatives that have existed in the field of empowering migrant workers.

Meanwhile, the President Director of LPDB-KUMKM Supomo appreciated this good meeting, and hoped that LPDB-KUMKM could be present to answer the capital needs of Indonesian migrant workers.

"Regarding the need for capital, LPDB-KUMKM hopes that there will be existing cooperatives at the Ministry of P2MI, so that LPDB-KUMKM can incubate to pass the mandatory requirements, and get access to revolving funds," explained Supomo.

Supomo continued, related to this, LPDB-KUMKM needs a legal umbrella that specifically regulates the flow of the loan process or financing to the assisted cooperatives of the Ministry of P2MI, which later the capital can be used for the needs of migrant workers.

"The Ministry of Cooperatives through the LPDB-KUMKM and the Ministry of P2MI will start piloting projects by formulating a business channel for the process and legal umbrella so that the assisted cooperatives of the Ministry of P2MI can be immediately incubated and get capital from LPDB-KUMKM," said Supomo.

With the synergy between the government and various institutions, this program is expected to provide real benefits for Indonesian migrant workers and support the strengthening of cooperatives as a pillar of the national economy.