Encourage MSMEs To Upgrade To Class, KUR Allocation In 2023 To Increase To Rp460 Trillion

Screenshot of Coordinating Minister for the Economy Airlangga Hartarto during the signing of the MoU of the Ministry of Cooperatives and Indonesian Chamber of Commerce and Industry. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would increase the amount of assistance in the form of people's business loans (KUR) by Rp460 trillion next year.

"This year's total is IDR 373 trillion and will be increased next year to IDR 460 trillion, and according to the President's direction, the credit will increase for medium-sized businesses," explained Airlangga at the signing of the MoU of the Ministry of Cooperatives and the Indonesian Chamber of Commerce and Industry, quoted by Antara, Monday, October 3.

Airlangga explained that people's business loans have a ceiling of up to Rp500 million, while medium-sized businesses have increased to Rp10 billion and will be increased.

"So far, only about 20 percent or IDR 1,200 trillion has been increased by five years, this ceiling will be increased to IDR 1,800 trillion in 2024, so the number will increase," he said.

Furthermore, for closed-loop activities, the government will provide a legal umbrella, namely in CSR (corporate social responsibility) or what is often called Environmental Social Responsibility (TJSL) in order to solve extreme poverty around the company's location.

He also explained that in the revision of Government Regulation (PP) Number 47 of 2021 it will be regulated so that the CSR is given in locations around the business, and if possible it will be expanded again.

Airlangga said the closed loop model was an effort by the government to encourage MSMEs to advance to class assisted by the Indonesian Chamber of Commerce and Industry in its implementation with existing examples.

"Always the President's directive to be replicated, the government appreciates Kadin's initiative," he concluded.

The government through Coordinating Minister Airlangga Hartarto seeks to encourage easy access to financing for MSMEs through KUR.

Through this KUR program, it is hoped that it can be utilized properly for MSME capital so that it can develop, progress, compete in domestic and foreign markets so that the Indonesian economy rises.