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Good news from Coordinating Minister Airlangga Hartarto: President Joko Widodo adds KUR and MSME credit plans

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SURYA.CO.ID, JAKARTA – The government will increase the ratio of credit allocated to micro, small and medium enterprises (MSMEs) to encourage their enterprises to move up to the category.

So far, the ratio of credit allocated to MSME actors has varied from 18 to 20 percent of total national credit. In 2024, efforts will be made to increase this ratio to over 30%.

This was conveyed by the Minister for the Coordination of Economic Affairs, Airlangga Hartarto, who made a statement to the presidential office, after attending a limited meeting with President Joko Widodo.

“Previously, the president has given instructions for funding UMKM. So far, our UMKM funding is at the level of 18-20% of total credit, where the president has requested a larger allocation so that there is a jump so that credit to MSMEs is targeted in 2024 at more than 30%, ”Airlangga told Palace President, Monday (04/05/2021).

In this regard, it is known that the achievement of People’s Business Credit Distribution (KUR) last year reached Rs 198.53 billion or 104 percent of the set target.

Most of the total disbursement came from KUR clients with loans ranging from Rs 10 million to Rs 50 million, which reached Rs 128 trillion or 65 percent.

President Joko Widodo, in his briefing at a limited meeting, also requested that the ceiling for KUR unsecured or below Rp 50 million could be increased to Rp 100 million.

Then, concerning the interest rate, President Joko Widodo also asked that the interest rate of People’s Business Credit be also competitive in the order of 6%.

“So the KUR which is unsecured of 50 million rupees is increased to 100 million rupees. So that the KUR interest rate is competitive within a range of 6%. Therefore, the government is in the process of developing a competitive interest rate program, ”Airlangga said.

In addition, he continued, the President of the Republic of Indonesia, Joko Widodo, also gave instructions to increase the KUR credit limit to 500 million rupees. Meanwhile, the MSME credit has been increased to Rs 20 billion, from the previous Rs 500 million to Rs 10 billion.

“This change should be reported to the President immediately,” Airlangga added.



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