Coordinating Minister Airlangga Encourages KUR For The Agriculture And Fisheries Sector Of Maluku Province

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

JAKARTA - Not only reviewing developments in the handling of COVID-19, in a series of working visits to Ambon City on Monday 4 October, Coordinating Minister for Economic Affairs Airlangga, Hartarto, also conducted a review and dialogue regarding the development of economic recovery in this city.

On that occasion, the Coordinating Ministry for Economic Affairs as the Secretariat of the Financing Policy Committee for MSMEs held an event "Optimizing KUR Distribution to Improve MSME Welfare and Economic Recovery".

Through this activity, it is hoped that there will be a strong synergy between the Regional Government and KUR (People's Business Credit) Channeling Institutions as well as the KUR Guarantee in accommodating the aspirations of the community and optimizing the distribution of KUR, as a strategic step to encourage national economic recovery.

"The government hopes that KUR can help MSMEs and support the acceleration of national economic recovery, including helping MSME entrepreneurs in Ambon City to be able to survive in the midst of the pandemic", said Coordinating Minister Airlangga.

In this event, exhibitions were also held from several MSMEs in Ambon City which were assisted by KUR distributors. Coordinating Minister Airlangga toured the exhibition booth, and also briefly talked with MSME actors. The products on display include spices, textiles, hydroponic agriculture, food and beverages, and handicrafts.

This activity is real action by the Government in optimizing the distribution of KUR (People's Business Credit) in Maluku Province with stakeholders of KUR distributors and guarantors, namely Bank BRI, Bank BNI, Bank Mandiri, Askrindo, and Jamkrindo.

"Hopefully KUR can continue to assist MSMEs in developing businesses in restoring the regional and national economy", said Coordinating Minister Airlangga.

Deputy for Macroeconomic Coordination and Finance of the Coordinating Ministry for the Economy, Iskandar Simorangkir, on the same occasion reported that the achievement of KUR realization during the pandemic in 2020 was recorded at IDR 198.53 trillion or higher than in the pre-Covid 2019 period which amounted to IDR 140.1 trillion.

During the COVID-19 pandemic in the last two years, the Government has made various KUR and financing policy programs for MSMEs, including in 2021 providing an additional 3 percent interest subsidy, so the interest rate will be only 3 percent until the end of 2021.

The government has also increased the KUR ceiling from IDR 253 trillion to IDR 285 trillion, raised the KUR ceiling without additional collateral from IDR 50 million to IDR 100 million, and required an increase in the provision for the MSME loan portion to at least 30 percent by June 2024.

The performance of KUR distribution continues to increase, the realization this year until 27 September 2021 has reached IDR 200.26 trillion (70.27 percent of the 2021 target of IDR 285 trillion) and was given to 5.39 million debtors, bringing the total outstanding KUR since August 2015 to IDR 321. trillion with NPL (Non-Performing Loan) maintained at around 1.14 percent.

KUR distribution in Maluku Province from January 2021 to September 27 2021 has reached IDR 768.51 billion to 26,660 debtors. The largest portion of KUR distribution in Maluku Province for 2021 per sector is the trade sector (55.66 percent), services (19.25 percent), and agriculture, hunting, and forestry (12.72 percent).

The agriculture and fishery sector is one of the supporting sectors for the Maluku province's economy as evidenced by the realization of KUR which was recorded at IDR 97.78 billion (12.72 percent) and 56.48 billion (7.35 percent).

Meanwhile, the distribution of KUR in Ambon City from January 2021 to October 1, 2021, has reached IDR 131.6 billion to 4,081 debtors. The largest portion of KUR distribution in Ambon City in 2021 per sector is the trade sector (54.26 percent), services (36.72 percent), and agriculture, hunting, and forestry (3.43 percent).

The composition of KUR distribution in the agricultural and fishery sectors in Ambon was recorded at IDR 4.51 billion (3.43 percent) and IDR 2.88 billion (2.18 percent).

"This indicates that there are still opportunities for KUR distribution in these two sectors", Iskandar added.