What Is KUR Cluster: The Good News Imploded By The Government For The Sake Of Planting MSMEs

YOGYAKARTA - Indonesian President Joko Widodo (Jokowi) asked his staff to expand and expand the cluster's business credit program (KUR) to various sectors in order to increase sales and examples of MSME businesses. Then, what is KUR cluster?

"I'm happy that now there is a cluster KUR model, this is true, it must be clustered, it must be clustered," said President Jokowi in the Submission of Cluster People's Business Credit (KUR) at the State Palace, Jakarta, Monday (19/12), quoted from Antara.

He admitted that he was happy because various KUR clusters have developed at this time. He gave an example of a horticultural cluster involving MSMEs from Islamic boarding schools.

For example, the cluster participates in growing the horticultural MSME business because there are off takers or underwriters who support the purchase of MSME products. Then, there is the coffee cluster.

"I'm happy that there was a boarding school that got up to billions of rupiah for horticultural matters, the vegetables were purchased, then sold through businesses that have a large network so that the off taker is clear," he said.

With the existence of various clusters, it also makes it easier for financing institutions such as banks to channel loans because the appropriateness of MSMEs has increased.

"There is an off taker, there is a guarantee of the buyer, then there is a showroom to sell the item, meaning that from production to entry to consumers it becomes clear, so that those who lend money, banks or non-bank institutions, are also sure that what we lend can be returned," he said.

Then, said Jokowi, KUR Cluster will also foster examples of MSME businesses because the distribution of financing will concentrate on certain MSME sectors.

With such a thing, MSMEs can expand their business not only in the upstream sector but also downstream.

"Later, the running of coffee will not only sell raw food, raw materials, but it could have become semi-finished goods or finished goods. Or, I've seen a lot of things in the regions, the packaging is good," he said.

Jokowi wants the livestock and fisheries sectors to also have a KUR cluster to increase food productivity.

"These cluster KUR models, if reproduced, can later enter into farmers, both meat and laying, can enter fishermen, which are related to ponds, groups like this are reproduced," said President Jokowi.

Minister of Cooperatives and SMEs Teten Masduki said that as of Monday (19/12) KUR clusters had realized Rp4.8 trillion to 1.39 million debtors.

KUR cluster distributes financing to business categories with a ceiling of up to IDR 500 million per business actor.

"Cluster curves are also given to groups of MSMEs, which are integrated from upstream to downstream, connected to offtakers, thereby reducing the potential for bad credit. This makes it easier for banks to carry out the monitoring process," said Teten.

KUR's contribution

It is noted that KUR has contributed to economic growth in Q3-2022 by 5.72% with the overall outstanding KUR covering 25.2% or exceeding bank credit growth of 11.01%.

To support the distribution of KUR, the government has lowered the rate of the Super Micro KUR interest rate to 3%.

The government also returned some of the KUR policies during the pre-pandemic period, starting from the micro KUR and Small KUR interest rates to 6%, the return of KUR distribution in the production sector by 60%, and the overall arrangement of the accumulated Small KUR ceiling to a maximum of IDR 500 million.

The government has also determined a 3% interest rate for the Agricultural Equipment and Machinery (Alsintan) credit scheme feature with a maximum ceiling of IDR 2 billion and cannot be felt repeated.

According to the Coordination Meeting of the Financing Policy Committee for MSMEs on July 22, 2022, it is known that the KUR distribution target in 2023 has been regulated at IDR 470 trillion and IDR 585 trillion for 2024.

However, adjustments will also be made to the amount of the KUR ceiling by setting the adequacy of the interest subsidy/KUR margin subsidy budget which has been regulated in the 2023 State Budget of IDR 40.94 trillion.

The government has also adjusted additional targets consisting of the target of new KUR debtors in 2023 as many as 1.7 million debtors, as well as the target debtors of KUR graduates in 2023 as many as 2.3 million debtors.

What banks can KUR?

Distribution

What if the KUR is not paid?

If you are unable to pay KUR installments such as an agreement, therefore the method will record and it will be difficult for debtors to get loans in the future. Then if it is proven that the debtor is unable to pay, it is very likely that KUR guarantees can be auctioned off.

How long does it take to apply for KUR?

The time range in the work on BRI KUR disbursement is quite flexible, which ranges from 7 to 14 working days from the time the survey is carried out until the approval information arrives and the disbursement is carried out. Usually, this will be adjusted quickly or indirectly to meet the existing requirements.

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