To Encourage Women's MSMEs, Coordinating Minister Airlangga Brings Good News: KUR Interest Is Only 3 Percent A Year!

Illustration (Photo: Doc. Grab Indonesia)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government continues to encourage the progress of micro, small and medium enterprises (MSMEs), especially those carried out by women, to be able to more optimally contribute to the national economy.

"In supporting MSMEs, including MSMEs carried out by women, the government provides various supports, one of which is the People's Business Credit (KUR) program," he said in a webinar on Tuesday, October 5.

According to Airlangga, support for women's MSMEs is reflected in the realization of super micro KUR in which 90 percent of debtors are women.

“MSMEs have an important role in the national economy. With the number of MSMEs reaching 64.2 million, they contribute 60.51 percent or equivalent to Rp.9,580 trillion of GDP (gross domestic product) by absorbing workers close to 90 percent, and absorbing quite large investments," he said.

For information, the KUR given to MSMEs sets an interest rate of 6 percent per year. However, in the current pandemic situation, the government provides an interest subsidy of 3 percent. So, customers only need to pay 3 percent interest for 12 months from borrowed funds.

Meanwhile, the realization of KUR distribution until September 27, 2021 has reached IDR 200.26 trillion (70.27 percent of the 2021 target of IDR 285 trillion).

This amount was given to 5.39 million debtors, so that the total outstanding KUR since August 2015 was IDR 321 trillion with NPL maintained in the range of 1.14 percent.

"Hopefully we can encourage the spirit of women's MSMEs to rise up, move forward together so that they can move up to medium-sized business activities," Airlangga concluded.