OJK Inaugurates Agricultural KUR For Citronella Cultivators In Minahasa

KUR launch ceremony for citronella farmers in Minahasa (Photo: OJK Doc.)

JAKARTA - The Financial Services Authority (OJK) has officially launched the People's Business Credit (KUR) for the agricultural sector for citronella cultivators in Minahasa Regency, North Sulawesi (Sulut).

Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that the success of this credit disbursement was the result of the work of the Regional Financial Access Acceleration Team (TPAKD).

"Development of the agricultural sector still requires support from various parties, not only in terms of financing, but also regarding assistance, marketing, including product packaging until products are ready for export," he said in a press statement, Thursday, October 14.

According to Wimboh, OJK together with local governments, the financial industry and other stakeholders support and continue to expand access to finance through the development of cluster-based KUR distribution, such as agriculture.

"This access to finance has a low interest rate and the process is fast, so that farmers and other MSME actors in the region can be helped by financing programs from the government," he said.

OJK itself launched if the realization of KUR in North Sulawesi Province was recorded at Rp. 1.548 trillion or 70.76 percent of the target this year.

The distribution of KUR to the agricultural sector is stated at IDR 282 billion or 18.21 percent of the total distribution of North Sulawesi KUR financing and has been distributed to more than 10,000 debtors.

Meanwhile, the agricultural sector is still one of the main contributors to the Gross Regional Domestic Product (GDP) of North Sulawesi which reached 19.86 percent, with one of the mainstay commodities being vegetable oil.

“KUR for the citronella plant cluster is one of the work programs of the North Sulawesi Province TPAKD because it has good sales prospects that can be used as various derivative products in the form of raw materials for perfume, soap, and shampoo. In addition, the remaining fermented citronella that has been processed can be used as animal feed, and this also supports the green economy,” continued Wimboh.

OJK hopes that the KUR cluster pilot project can be implemented more widely and more by banks and become an inspiration for development in the North Sulawesi region.

Furthermore, Wimboh also handed over assistance to the Lemongrass Farmers Group in the form of giving one unit of citronella oil distillation equipment.

"We hope that with the additional distillation equipment, we can increase the volume of citronella oil production so that it will add value to this commodity and provide the welfare of the surrounding community," concluded Wimboh.