Jakarta, (ANTARA News) - The government is advised to focus on the development of cooperatives and small and medium scale businesses in various regions by increasing budget allocations.

"The government`s focus on cooperatives seems to be less maximal," said Mohamad Hekal, deputy chairman of Commission VI of the House of Representatives (DPR) here on Wednesday.

He said that the ceiling of budget for small and medium scale enterprises (SOEs) was set at Rp961 billion but it could not be maximal in boosting the growth of cooperatives and SMEs.

Hekal, a politician of the Gerindra Party, is of the view that the matter happened because the people have not yet been given easy facilities in having access to capital.

After all, he said, of the 200 thousand cooperatives, the healthy ones accounted for only about 80 thousands.

As proclaimed, the Ministry of Cooperatives and SMEs stated that people`s business loans (KUR) are affirmative programs to strengthen cooperatives, small and medium enterprises (SOEs).

Deputy for Financing of the Ministry of Cooperatives and SMEs Yuana Setyowati in Jakarta, Monday (Oct 22), said KUR was a government affirmative policy for efforts to strengthen cooperatives and SMEs, especially in terms of financing.

The KUR program has been running for a long time, then by the Jokowi-JK government it was developed from 2014 to 2018, among others by lowering the KUR interest rate.

"Initially, in 2014 the KUR interest rate was 22 percent. Then it was cut to 9 percent in 2015 and in 2018 it was lowered to 7 percent," he said.

From the beginning of the year to September 30, 2018, KUR has been absorbed to reach more than Rp100 trillion to 3.79 million SOE actors.

From the distribution figures, KUR is almost more than half of those who are absorbed in the trade sector.

Reporting by Muhammad Razi

Reporter: Andi Abdussalam
Editor: Otniel Tamindael
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