Coordinating Minister For Airlangga Encourages Optimization Of Business Incubation Centers In Campus Environments

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

JAKARTA - All countries are trying to rise from the pandemic and this has encouraged economic recovery to occur in various countries. In Indonesia, key economic indicators confirm the recovery performance which continues to show prospects for improvement. It is estimated that Indonesia's overall economic growth in 2021 could reach 3.7 percent to 4.5 percent.

"The impact of the PPKM tightening in July 2021 will be temporary. This can be seen from the return of PMI manufacturing activity expansion in September at 52.2," said Coordinating Minister for Economic Affairs Airlangga Hartarto in the Goes to Campus Public Business Credit Socialization (KUR) virtually on Tuesday 12 October.

The event was attended by students and academics from Telkom University, PKN STAN, Binawan University, and STIA LAN Jakarta Polytechnic.

During the pandemic, MSMEs have proven to be critical engines that play a major role in the recovery of the national economy. For this reason, the government continues to strive to formulate strategic policies for MSMEs to achieve prosperity and equity, one of which is increasing access to financing by issuing Macroprudential Inclusive Financing Ratios or MSME credit ratios for banks.

The government through this provision expands the scope of MSME credit financing by taking into account the expertise and business model of banks, including financing that can be done directly through supply chains, financial service institutions, purchase of securities, and other financing determined by Bank Indonesia.

In order to accelerate the recovery of MSMEs during the pandemic, the government will increase the KUR ceiling twice in 2021, the first by Rp220 trillion to Rp253 trillion, and finally increasing it to Rp285 trillion.

"The great attention to MSMEs is not only manifested in the provision of low KUR interest rates, but also an additional interest subsidy from 6 percent to 3 percent in 2021. This is also followed by simplified requirements and Unsecured Loans are increased from Rp50 million to Rp100 million "explained the Coordinating Minister for Airlangga.

The government has also relaxed KUR, including the postponement of KUR principal installments, extension of the term and additional KUR ceiling limits as well as relaxation of administrative requirements.

In line with the implementation of the stimulus for MSMEs through KUR to strengthen the national economy during the pandemic, Coordinating Minister Airlangga said encouragement from various stakeholders was also needed, including involving academics.

"KUR socialization activities to universities or colleges are expected to optimize business incubation development centers in the campus environment which can be supported through KUR financing," said Airlangga.

Deputy for Macroeconomic Coordination and Finance at the Coordinating Ministry for Economic Affairs Iskandar Simorangkir on the occasion said that in order to absorb labor and in the long term make Indonesia a developed country, Indonesia must be able to create young entrepreneurs.

"To support student entrepreneurship, the Government supports it by providing working capital. This KUR needs to be introduced to students because most students who are entrepreneurial start their business from the MSME scale," said Deputy Iskandar.

The government hopes that young people who mostly come from students on campus can become new entrepreneurs and the government targets that by 2024 it will reach 3.9 percent of new entrepreneurs who come from youth.

"The socialization of KUR to academics today is expected to be carried out as a manifestation of collaboration between the government and KUR channeling institutions. Hopefully MSMEs can advance to class. And this effort is mainly expected to revive MSMEs after the COVID-19 pandemic," concluded Coordinating Minister Airlangga.