"The government should support the KUR program. Without its help, SMEs will face difficulties in achieving growth," SMEs and Cooperatives Minister Anak Agung Gede Ngurah Puspayoga stated here on Tuesday.
Puspayoga said the government had lowered the interest rate on KUR credits for small businesses from 22 percent to nine percent. With some of the KUR loan interest rate being subsidized by the government, the banks distributing the KUR are expected to accelerate their credit provision to SMEs.
The minister stated that the launch of a linkage program by banks with rural banking (BPR) and cooperatives was one of the efforts to accelerate the distribution of KUR credits.
"We laud the steps taken by banks, in this case by Bank BNI, with regard to the linkage program with the BPR. We hope it would accelerate the absorption of KUR credits," the minister noted, expressing hope that the BPR and cooperatives would boost their performance, so that the linkage program would be effective.
This year, the government has allocated Rp100 trillion for KUR credits to micro, small and medium enterprises. The credit fund is far higher this year compared to only Rp30 trillion set aside in 2015.