Minister of Cooperatives Encourage Cooperatives to Utilize Ultra Micro Credit

By : Ahmad Fadli And Aldi Firhand. A | Sunday, September 17 2017 - 20:15 IWST

SME AAGN Puspayoga (left) was accompanied by HG Smart H Hero Gagarin (right) inaugurated the launch of HG Smart digital-based digital app on Thursday (17/8/2017) (Foto Rizki Meirino)

INDUSTRY.co.id - Jakarta- Minister of Cooperatives and SMEs (Menkop) AAGN Puspayoga encourages cooperatives in the regions to take advantage of ultra-micro financing or credit (UMi), which is dedicated to low-income communities.

Minister of Anak Agung Gede Ngurah (AAGN) Puspayoga said in accessing the very low interest credit, it is expected that cooperatives will be more developed and developed, so as to improve the welfare of members and reduce poverty.

"I ask the Governor, the Regent and the Head of the related Office to socialize the UMI financing which is the policy as well as the government's commitment to help the cooperatives and SMEs (KUKM) to grow and increase the class." It is important that the contribution of cooperatives and SMEs in the country to GDP is increasing, Puspayoga.

Puspayoga explains, UMI credit is sourced from APBN funds which channeling done through institutions or nonbank financial institutions.

This year, the government allocates funds for UMI financing of Rp1.5 trillion with an interest rate of 2 percent.

Puspayoga added, UMI credit is a government effort to state the welfare of the community as well as national economic growth.

Through the UMI credit is expected economic growth enjoyed by all people, especially low-income communities.

Currently, said Puspayoga, there are five cooperatives that utilize UMI credit, among them KSP Sidogiri (East Java), cooperatives under the auspices of the NU, and Muhammadiyah.

"We hope other cooperatives will soon take advantage of these low-cost loans," he said.

On that occasion, Menkop and UKM reminded that the fund (UMI credit) is not a grant as it is often understood by the community.

"Remember this credit should be returned, because it is a revolving fund that must be accounted for," he said.

In addition to the UMI credit, Puspayoga also encourages cooperatives to utilize credit from the Revolving Micro Small and Medium Enterprises Cooperative Fund Management Institution (LPDB-KUMKM) of the Ministry of Cooperatives and SMEs.

"Take advantage of the funds from LPDB, because the interest is also relatively low so it is not burdensome business, and it is devoted to KUMKM," he said.