The Government has announced several measures to expand microcredit program (KUR) for Micro, Small and Medium Enterprises (MSMEs).
“The program is pivotal in speeding up economic recovery amid COVID-19 pandemic so it is necessary to increase the loan ceiling and simplify the requirements,” Coordinating Minister for Economic Affairs Airlangga Hartarto said, Wednesday (12/29).
For the record, the Government has decided on the rise in next year’s KUR ceiling to Rp 373.17 trillion with a fixed interest rate at 6 percent.
To accelerate economic recovery, especially for MSMEs, the Government has also made several changes to the KUR policy, including providing a higher ceiling for micro KUR (without additional collateral) up to Rp 100 million, scraping the loan ceiling for non-trade production sector, providing a higher loan ceiling for migrant workers up to Rp 100 million, and extending the relaxation policy during the pandemic.
The relaxation of the KUR policy has increased demand for KUR and contributed to economic growth as demand for KUR shows an increase from a monthly average of Rp 11.7 trillion in 2019 (pre-pandemic) to Rp 16.5 trillion in 2020 and Rp 23.7 trillion in 2021.
In the meantime, the realization of KUR from January 2021 to December 27, 2021 has reached Rp. 278.71 trillion or 97.79 percent of the 2021 target of Rp. 285 trillion and it is estimated that 99 percent of KUR loan target can be achieved by the end of this year.
“By changing the KUR policy, the Government shows its commitment to supporting MSMEs by providing easier and more affordable KUR requirements so that they can optimize their role to boost national economy,” Airlangga remarked. (PR of Coordinating Ministry for Economic Affairs/UN) (RI/EP)