KUR Interest Subsidy Extended Until Year End, Government Prepares Rp. 11.9 Trillion Budget

JAKARTA - The government through the Coordinating Minister for the Economy Airlangga Hartarto said that the interest subsidy for people's business loans (KUR) was extended until December 31, 2022.

According to him, this policy is also a continuation of the previous stipulation, which is only until June 30, 2022.

"This is to accelerate the recovery of MSMEs in Indonesia. For this reason, the government has provided a budget of Rp. 11.9 trillion," he said in an official statement quoted on Tuesday, March 8.

In Airlangga's explanation, the distribution of KUR in 2021 will increase by 42 percent to IDR 281.9 trillion.

“This amount is distributed to .38 million debtors. This KUR is also classified as good in terms of credit quality with a non-performing loan (NPL) ratio of 0.98 percent," he said.

Airlangga added that the government will also continue the Cash Assistance Program for street vendors, stalls, and fishermen this year with a value of IDR 600,000 to 2.76 million recipients.

"The distribution will be carried out by officers from the TNI/Polri in the 212 regencies and cities that are priority," he stressed.

For information, the KUR interest subsidy program is included in the 2022 National Economic Recovery (PEN) scheme which has a total allocation of funds of IDR 455.62 trillion.

This figure is divided into three main clusters. First, the handling of health Rp122.5 trillion. Second, community protection amounting to Rp. 154.8 trillion. And the third is strengthening the economic recovery of Rp. 178.3 trillion.