Distribution Of KUR Semester I Drops, Coordinating Minister Airlangga Will Reshuffle Target 2023

JAKARTA - The government through the Coordinating Minister for the Economy Airlangga Hartarto stated that the realization of the distribution of People's Business Credit (KUR) until the first semester of 2023 was IDR 105.47 trillion. According to him, this amount was distributed to 1.91 million debtors.

"Baki Debet KUR as of June 30 amounting to IDR 466 trillion which was distributed to 41.67 million KUR debtors, with the April 2023 Non-Performing Loan (NPL) position maintained at the level of 1.63 percent," he said in a written statement on Friday, July 14.

Airlangga explained, when viewed in terms of the amount of distribution, the realization of KUR in the first semester of 2023 returned to normal patterns before the COVID-19 pandemic after the revocation of PPKM.

"On the quality of distribution this year, it fulfills the aspect of the distribution of KUR that is right on target, encourages KUR debtors to advance to class, and expands lending/financing to new KUR debtors," he said.

Airlangga added, until April 2023 as many as 52 percent of debtors are engaged in higher access to financing and the increase in the portion of new KUR debtors from 50 percent in 2022 to 79 percent or as many as 761,000 new KUR debtors in April 2023.

Based on information compiled by the editors, the realization of KUR in the first half of this year was less than 25 percent of the target, which was IDR 450 trillion. For this reason, the government will re-calibrate the target.

"Paying attention to the dynamics of KUR distribution in the first semester, it is necessary to adjust the target for KUR distribution in 2023. By maintaining the number and quality of KUR disbursement and paying attention to the adequacy of the budget needed to complete the carry over of KUR subsidy bills in stages in 2023 and 2024," he said.

For information, several fundamental changes have been made by the government to KUR in 2023, including by implementing tiered interest rates/margins for KUR debtors repeatedly in order to increase relegated KUR debtors, and encourage the expansion of access to financing by distributing KUR to new debtors.

In addition, the change in the policy feature contained in Permenko 1 of 2023 concerning Guidelines for the Implementation of KUR, also regulates the reformulation of criteria for prospective KUR recipients which aim to eliminate the practice of transferring commercial credit debtors into KUR debtors and the application of the Super Micro KUR interest rate (phone s.d. Rp. 10 million) of 3 percent for increasing access to financing on the ultra micro business scale.