KUPANG - East Nusa Tenggara Governor Melki Laka Lena assessed that micro, small and medium enterprises (MSMEs) can become a mainstay of the economy in the midst of global turmoil.
"I encourage the acceleration of the distribution of People's Business Loans (KUR) to strengthen the role of micro, small, and medium enterprises (MSMEs) as a support for regional economies in the midst of global uncertainty," he said in Kupang, Saturday.
This was conveyed in a joint meeting with Himbara banks and Bank NTT in Kupang.
In the meeting, Melki said that the high demand for access to financing from the community was a signal of the increasing need for business capital that must be immediately responded to.
"Public demand for KUR continues to increase. This shows that the need for business capital is getting higher and we have to facilitate it so that MSMEs can continue to move and be productive," he said.
According to Melki, KUR is a strategic instrument of the government in expanding financial inclusion as well as encouraging the growth of the real sector, especially MSMEs and small and medium industries (IKM).
He assessed that the business activity in the processing, agriculture, and livestock sectors in NTT showed a positive trend, so that financing support needed to be optimized to be able to reach more business actors.
"In a global economic environment that is not yet stable, MSMEs are actually the mainstay of the regional economy. Therefore, KUR must be present as a booster so that people's businesses can survive and grow," he said.
The Governor also emphasized the importance of strengthening synergy between local governments and the banking sector in accelerating the distribution of KUR while maintaining the principle of prudence.
"Banking and the government must work together, but the financing scheme still follows the banking mechanism. We want the distribution of KUR to remain healthy and not pose a risk of default," he said.
In addition to accelerating distribution, the NTT Provincial Government also encourages the improvement of people's financial literacy. Melki said there were still many UMKM actors who did not fully understand the access and mechanism of KUR.
"Education is the key. Many people need it, but they don't have enough information about KUR. We have to strengthen it together," he said.
The NTT Provincial Government hopes that this acceleration step will be able to expand access to targeted financing, as well as encourage regional economic growth and improve people's welfare sustainably.
--- East Nusa Tenggara Governor Melki Laka Lena while leading a meeting with Himbara banks and Bank NTT. ANTARA/Ho-Humas Pemprov NTT
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