Government Targets Capai KUR Distribution Of IDR 300 Trillion By 2025

Coordinating Minister for Economic Affairs Airlangga Hartarto. (doc. Coordinating Ministry for Economic Affairs)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the Government is targeting the distribution of People's Business Credit (KUR) to reach IDR 300 trillion by 2025.

"The government continues to be committed to continuing the KUR program in 2025. The target for KUR distribution next year will be optimized up to Rp300 trillion, so that this program can reach more MSMEs and have a greater impact on the economy," he said in his statement, Wednesday, December 25.

Airlangga said that the target has taken into account the adequacy of the interest subsidy budget/subsidy for the KUR margin for Fiscal Year 2025 and hopes that with the determination of the target for KUR distribution next year, it will be able to reach more than 2 million new KUR debtors and 1 million KUR debtors who are graded.

Airlangga conveyed that the focus of KUR distribution to new debtors is expected to expand access to financing for Indonesian MSME players, while the mentoring program to encourage the graduation of KUR debtors will encourage them to advance to class both in terms of business capacity and increase financing in developing their business.

In addition to the decision to determine the 2025 KUR target, Airlangga said that there is also a strategic policy to optimize KUR in 2025, one of which accommodates the implementation of Innovative Credit Scoring (ICS) as one of the options in determining the quality of prospective KUR debtors.

Airlangga conveyed a strategic decision to strengthen the KUR ecosystem, including institutional arrangements including the committee secretariat which is still running well in the work unit of the Coordinating Ministry for Economic Affairs and re-establishing KPA KUR due to changes in the nomenclature of organizational arrangements in each ministry/institution member of the Financing Policy Committee for MSMEs, namely the Ministry of MSMEs and the Ministry of Protection of Indonesian Migrant Workers.

"Agreeing with the proposed amendment to the Permenko Guidelines for the Implementation of KUR to optimize the implementation of KUR distribution in 2025," he explained.

Airlangga added and approved the adjustment of Alsintan's Business Credit Program policy as support for the success of the food security program.

Then in the results of the coordination meeting also agreed to increase financing support for Indonesian Migrant Workers (PMI), including through a linkage scheme and as well as expanding financial institutions that can channel PMI KUR so that KUR is more accessible and approves of labor-intensive credit/investment financing schemes.

Airlangga said that the People's Business Credit program was optimized as one of the economic instruments in realizing the Astacita of President Prabowo Subianto's Government.

"The strategic decision produced in this meeting is a concrete step to strengthen the real sector and prosper MSMEs in Indonesia," he said.

Airlangga said that with the support of all stakeholders, KUR is expected to continue to be a driving force for the people's economy and the recovery of the national economy, so as to be able to realize the ideals of a sovereign, just and prosperous Indonesia.