2018, Government Targets 50% of KUR Distribution in Productive Sector

INDUSTRY.co.id - Jakarta - Deputy for Financing Ministry of Cooperatives and SMEs Yuana Sutyowati confirmed that the distribution of small business credit (KUR) in 2018 will be further enhanced targeting the productive sector or the real sector to 50% of the total disbursement.

In previous years the real sector only got 20% of KUR funds. In 2017, from the target of 40%, 45% has been realized for the productive sector. For details, data per November 30, 2017 KUR distribution has been realized amounting to Rp91, 30 trillion with the number of debtors four million people more for the trade sector (55%), agriculture, plantation and forestry (24%), service sector (12%), manufacturing industry sector (6%), and fisheries sector (2%). "The composition of the distribution is more propagated to the productive sector as directed by President Jokowi, and Ministry of Cooperatives and SMEs will continue to encourage the channeling in that direction," Yuana told reporters in Jakarta (22/12).

Yuana added that the distribution of KUR throughout 2017 is run by 33 banks, four financial institutions, and one cooperative (Kospin Services).

Of the total disbursements are still dominated by three state-owned banks, such as Bank BRI (Rp68.46 trillion or 62.23% with 3,683,455 debtors), Bank Mandiri (Rp12.10 trillion or 11% with 208,058 debtors), and Bank BNI (Rp7 , 87 trillion or 7.15% with 48,156 debtors). While the realization of KUR by province, namely Central Java (16.205 trillion to 819,116 debtors), East Java (Rp156,586 trillion to 804,400 debtors), and Jabar (Rp11.689 trillion to 582,871 debtors).

According to Yuana, in the effort to accelerate the realization of KUR distribution, the government continues to make efforts. Among them, include non-bank financial institutions (LKBB) and cooperatives. In fact, this year, in addition to Kospin Services, there is another KUR distributor KSP Kopdit Obor Mas (Maumere, NTT) which has a membership of 75 thousand people more with total assets of Rp575 billion.

 "In addition to the two cooperatives, there are another 10 cooperatives that have registered as KUR suppliers." Hopefully more cooperatives will become KUR suppliers, "said Yuana.

What is clear, said Yuana, KUR program is rolled out with the aim of improving access to SMEs to capital resources. From 2007 to December 31, 2016, KUR totaled Rp295.15 trillion to 17.7 million debtors with NPLs nationally at 3.3%.

"In the following years, the government continues to improve MSME access to financing sources, as seen from the targeted allocation of KUR grew to Rp110 trillion in 2017 from Rp100 trillion in 2016. Similarly, the government has lowered the KUR interest rate from 22% to 9%" , said her.