Supporting The MSME Capital, Coordinating Minister Airlangga Says KUR Realization Reaches IDR 183.78 Trillion

Illustration (Photo: Doc. Grab Indonesia)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that micro, small and medium enterprises (MSMEs) have an important role in the Indonesian economy.

For this reason, the government called Airlangga is committed to supporting the productive activities of these people's business actors, one of which is from the aspect of capital through people's business loans (KUR).

"In order to accelerate the recovery of MSMEs, the government has also increased the KUR ceiling from IDR 253 trillion to IDR 285 trillion in 2021," he said in a press statement as quoted on Monday, September 27.

According to Airlangga, the realization of KUR until September 20 was IDR 183.78 trillion, equivalent to 64.48 percent of the ceiling distributed to 4.9 million debtors throughout Indonesia.

"This amount, if accumulated from the previous year, becomes IDR 322 trillion, which is given to 29.5 million debtors," he said.

Airlangga added that the government also provides space for MSMEs through a credit restructuring program. As of July 31, 2021, it was recorded that more than 3.59 million MSMEs had utilized this program with a value of IDR 285.17 trillion.

“Various efforts and programs that have been initiated need to be strengthened and supported by various parties including the private sector so that they can increasingly provide optimal benefits for MSMEs. Coordination with all stakeholders must be maintained and further improved,” he said.

Citing data from the Ministry of Cooperatives and SMEs, in March 2021 the number of MSMEs reached 64.2 million with a contribution to gross domestic product (GDP) of 61.07 percent or IDR 8.573.89 trillion. In addition, one of the crucial roles of MSMEs is that they are able to absorb 97 percent of the total workforce, and can collect up to 60.42 percent of the total investment in Indonesia.

"This capital program is expected to increase the spirit of MSMEs to move forward together and rise to become strong MSMEs both during and after the COVID-19 pandemic," Airlangga concluded.