Good News From Airlangga For MSMEs: The Government Increases The KUR Ceiling Without Guarantee To Rp. 100 Million

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Of the Coordinating Ministry for the Economy)

JAKARTA - The government has decided to increase the unsecured People's Business Credit (KUR) ceiling from IDR 50 million to IDR 100 million to mobilize financing for MSMEs.

"The government has set several changes to the KUR policy, one of which is the change to the KUR scheme without guarantees, which initially was Rp. 50 million to Rp. 100 million," said Coordinating Minister (Menko) for the Economy Airlangga Hartarto in a statement in Jakarta, quoted from Antara, Tuesday, May 4. .

Coordinating Minister Airlangga said the unsecured KUR value scheme of up to Rp100 million was given primarily for small KUR. The recipient of this small KUR will later become a participant of BPJS Ketenagakerjaan according to Presidential Instruction Number 2 of 2021.

The government, he continued, also provided additional Special KUR allocations for the UMKM industry, or other productive sectors that could be developed into Special KUR.

Based on the previous provisions, the Special KUR was only given for community plantation commodities, smallholder livestock, and community fisheries. On this occasion, the government through the Financing Policy Committee for MSMEs also decided to increase the KUR interest subsidy to 3 percent for 6 months until the end of 2021.

"The government has decided to extend the additional subsidy on the KUR interest so that it becomes 3 percent for 6 months, from July 1, 2021 to December 31, 2021," said the Coordinating Minister for Airlangga.

For the additional policy on KUR interest subsidies during this period, the government has provided a budget of IDR 4.39 trillion, so that the total need for KUR interest subsidies in 2021 will reach IDR 7.84 trillion.

With these various policy changes, the government decided to raise the KUR ceiling in 2021, from the previous Rp253 trillion, to Rp285 trillion.

"The increase in the ceiling is a response to the enthusiasm of MSMEs players for the presence of KUR with low interest rates and also hopes for the recovery of UMKM businesses," said the Coordinating Minister for Airlangga.

These new policies were formulated so that MSME financing could reach 30 percent of total bank credit by 2024 or an increase from the current portion of 18.8 percent.

Realization of KUR

Meanwhile, the government noted that the realization of KUR distribution until the end of April 2021 had reached Rp. 82.56 trillion or around 32.63 percent of the target of Rp. 253 trillion.

The KUR has been given to 2.28 million debtors with a total outstanding reaching IDR252.92 trillion and a non-performing loan (NPL) level of only 0.71 percent.

Based on data from the Credit Program Information System (SIKP) related to the realization of KUR during the pandemic, additional KUR interest subsidies until the end of December 2020 have been given to 7.02 million debtors amounting to IDR186.5 trillion.

Then the realization of postponement of principal installments until April 29, 2021 has been given to 1.76 million debtors with a debit of IDR 70.53 trillion.

Furthermore, KUR relaxation until April 29, 2021 in the form of an extension of the period has been given to 1.51 million debtors with a debit of IDR 47.51 trillion and an additional ceiling limit given to 16 debtors with a debit of IDR 2.49 billion.