Distribution In 2021 Is 63 Percent Of The Target, The Government Continues To Maximize The Role Of KUR To Help MSMEs During The Pandemic

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

JAKARTA - In response to the impact of the COVID-19 pandemic, the government through the People's Business Credit (KUR) program is trying to revive MSME business activities with easy and affordable access to financing. These efforts are through the provision of an additional 3 percent KUR interest subsidy until December 31, 2021, a policy of delaying KUR principal installments, and relaxation of KUR provisions in the form of an extension of the time period and the addition of the KUR ceiling limit given to KUR recipients affected by the COVID-19 pandemic.

The government continues to maximize the role of KUR to help MSMEs survive during the pandemic while increasing MSME productivity so that they can move up class and "go digital". As of September 13, 2021, KUR has been distributed in the amount of IDR 179.54 trillion to 4.77 million debtors. This means that KUR distribution has reached 63 percent of the 2021 target with Non-Performing Loans being maintained at 0.99 percent.

"As directed by the President, the KUR budget is increased and currently it has been increased from IDR 253 trillion to IDR 285 trillion with an interest of 3 percent," explained Coordinating Minister for the Economy Airlangga Hartarto when following the KUR distribution agenda in a series of working visits in Pekalongan City, Thursday, September 16.

On the occasion, Coordinating Minister Airlangga symbolically handed over KUR to 17 KUR debtors BRI, BNI, Bank Mandiri, Central Java BPD, BSI, and Kospin Jasa with a value of Rp3.17 billion. Debtors who attended were represented by business actors in batik, agriculture, plantations, animal husbandry, convection, handicrafts, vegetable and chicken traders. Coordinating Minister Airlangga also had a direct discussion with 9 KUR beneficiaries who displayed their business products in the MSME booth.

"I appreciate the role of banks that have channeled KUR very well. The distribution is high as well as the distribution of assistance assistance is also high. Hopefully this can increase economic growth and the community can prosper," said Coordinating Minister Airlangga.

Deputy for Macroeconomic and Financial Coordination Iskandar Simorangkir on the occasion reported on the development of KUR in Central Java Province from January 2021 to September 13, 2021 which had reached Rp32.08 trillion and was given to 930,478 debtors.

The process of distributing KUR in Central Java Province during 2021 was 49.69 percent in the trade sector, followed by agriculture, hunting and forestry by 24.39 percent and services by 12.92 percent.

Specifically for Pekalongan City, the distribution of KUR from January 2021 to September 13, 2021 has reached Rp192.95 billion which was given to 5,598 debtors. Percentage spread to several sectors, namely the trade sector by 56 percent, the manufacturing sector 23.72 percent and services by 17.27 percent.

Coordinating Minister Airlangga also witnessed the distribution of assistance for pesantren empowerment in the form of assistance for the construction and renovation of the EUREKA MART partnership program managed by pesantren. The empowerment assistance was distributed to 10 Islamic boarding schools with each receiving 200 million rupiah. Through this assistance, the pesantren is expected to be able to produce independent and entrepreneurial students.

Assistance in the form of student cards from PT Telkom was also handed over to representatives of Islamic boarding schools on that occasion. In addition to supporting the administration, monitoring, and transactions of students, the existence of the Santri Card also has an impact on MSMEs with an integrated digital economy ecosystem that has been designed in it.

The government continues to be committed to restoring the national economy as well as developing the sharia economy and MSMEs in Indonesia because Indonesia has great potential in the sharia economy. Indonesia occupies the 6th largest position in the halal industry in 2020 and ranks 7th in the world's largest total Islamic financial assets with a value of 99 billion US dollars in 2019.

KUR distributors and guarantors also provide assistance in the form of Community Livestock Biogas Installation Packages, Special Tea Oven Installation Packages for People's Tea Plantations, and Student Cards for the Go Digital Telkom Islamic Boarding School Program. KUR distributors and guarantors on that occasion also provided food packages assistance to health workers at Zaky Djunaid Hospital.

"Economic growth and COVID-19 are like two cycles. If COVID-19 cases decline, the economy will increase, and vice versa. Currently, COVID-19 cases have fallen below 100,000. We hope that by the end of the year Indonesia's economic growth can reach 3, 7 - 4.5 percent," concluded Coordinating Minister Airlangga, who on that occasion also provided assistance in the form of 1 ton of eggs to students, which were received directly by representatives of students.

Also present on the occasion were the Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Deputy for Food and Agribusiness Coordination Musdhalifah Machmud, Member of the Indonesian House of Representatives, Pekalongan Mayor Achmad Afzan Arslan Djunaid, Chair of the Pekalongan DPRD M. Azmi Basyir, Batang Wihaji Regent, Pekalongan City Forkopimda , as well as representatives of KUR distributors from Bank BRI, BNI, Bank Mandiri, Central Java BPD, BSI, Kospin Jasa along with KUR guarantors namely PT Jamkrindo, PT Askrindo, and PT Jamkrida Central Java.