The People's Business Credit Target Increases, BPKP Arranges Distribution Supervision Synergy This Year

Deputy Head of BPKP for State Accounting Sally Salamah. (Photo: BPKP Public Relations)

JAKARTA - Deputy Head of BPKP for State Accountants Sally Salamah revealed that the BPKP together with the Monitoring Forum will still develop a strategy to supervise People's Business Credit (KUR) in 2023.

This step is in line with the increasing KUR distribution target.

Meanwhile, the realization of KUR distribution in 2022 reached IDR 365.50 trillion or around 97.95 percent of the target set at IDR 373.17 trillion.

"KUR distribution has continued to increase in the last 5 years, from IDR 120.30 trillion in 2018 to IDR 365.50 trillion in 2022. This was achieved thanks to the cooperation of KUR stakeholders, namely KUR channeling institutions, guarantee institutions, and others", he said in the Supervision Forum Implementation of KUR which was held at BPKP, Friday, January 13.

Sally said that in line with the government's commitment to boosting the competitiveness capacity of Micro, Small, and Medium Enterprises (MSMEs), in 2023 the government has set a target for KUR distribution to increase to IDR 470 trillion and in 2024 to IDR 585 trillion.

Therefore, continued Sally, supervision is needed from all parties so that the benefits of KUR can be felt by the community.

"It is necessary to carry out supervision by all parties involved in overseeing accountability both in terms of KUR distribution and the disbursement of the KUR subsidy budget which continues to increase every year", he said.

With this KUR, Sally said it was hoped that MSMEs could take advantage of the facilities provided by the government in the form of low interest, collateral that was not required for KUR with a ceiling of under IDR 100 million, and ease of restructuring provided by KUR dealers.

"It is hoped that this forum will not only be followed but can really be understood and will become a provision in carrying out KUR supervision", he concluded.

Meanwhile, the Deputy for Coordinating Macroeconomics and Finance of the Coordinating Ministry for the Economy, Iskandar Simorangkir, said a total of 7.62 million debtors had been given KUR throughout 2022.

Of this amount, it is divided into four namely, Micro KUR 66.41 percent, Small KUR 31.84 percent, Super Micro KUR 1.74 percent, and finally PMI Placement KUR below 1 percent.

"For the 2023 KUR policy, the Regulation of the Coordinating Minister for the Economy is still in the process of being enacted", he said.

It is known, in the context of the effectiveness of KUR supervision, a KUR Supervision Coordination Forum was formed which is contained in the Decree of the Coordinating Minister for Economic Affairs as Chair of the Financing Policy Committee for MSMEs number 4 of 2020.

The members of Forwas KUR consist of BPKP and parties from various Ministries and Institutions as well as the Financial Services Authority (OJK).