Coordinating Minister Airlangga Reports KUR Realization Until June 2021 Reaches Rp143.14 Trillion

Coordinating Minister for the Economy Airlangga Hartarto when giving a press statement on the realization of the 2021 KUR (Photo: Screenshot of the Presidential Secretariat's Youtube)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the realization of People's Business Credit (KUR) for the period January to June 25, 2021, had reached Rp143.14 trillion. This number reflects 56.58 percent of this year's overall target of Rp253 trillion.

"This KUR has been given to 3.87 million debtors and the outstanding until August 2021 is Rp283 trillion and the NPL (non-performing loan / non-performing loan ratio) is very low at 0.88 percent," he said in a virtual press conference, Monday, July 26.

According to Airlangga, the distribution of KUR is now almost close to the period before the COVID-19 pandemic occurred.

"This good increase in KUR is because the economy has recovered, and is supported by a low-interest rate, which is 3 percent, where the KUR interest rate should be 6 percent, then the government provides a 3 percent subsidy," he said.

As for KUR for the agricultural sector, in detail Airlangga said that KUR for oil palm plantations absorbs around Rp9.5 trillion. This was followed by Rp7.8 trillion for rice, Rp5.5 trillion for other crops, Rp5.2 trillion for horticulture, Rp3.9 trillion for cattle, and Rp3.5 trillion for goats and sheep.

Then, the cultivation of palawija crops of Rp2.7 trillion, mixed farming of Rp2.6 trillion, and seeding of Rp1.1 trillion.

"So the food KUR cluster is 26.8 trillion, horticulture is Rp7.84 trillion, plantation is Rp20.3 trillion, and livestock is Rp15.1 trillion," he said.

Furthermore, Coordinating Minister Airlangga also explained that the formation of an ultra micro holding resulting from the merger of PT Bank Rakyat Indonesia Tbk. (BRI), Pegadaian, PT Permodalan Nasional Madani (PNM) can accelerate the distribution of KUR more massively.

"Through this merger, the medium and small business financing ecosystem has been integrated from upstream to downstream," he said.