2019 KUR realization reaches Rp139.5 trillion: ministry

2019 KUR realization reaches Rp139.5 trillion: ministry

Deputy of Macro Economy and Finance at the coordinating ministry of economic affairs Iskandar Simorangkir in the socialization of KUR implementation guidelines in Jakarta, Tuesday. (21/01/2020). ANTARA/Dewa Wiguna/AK

Actually, if we don't brake (the realization) can be surpassed
Jakarta (ANTARA) - The realization of the microcredit program (KUR) for the January-December 2019 period reached Rp139.5 trillion or 99.6 percent of the target of Rp140 trillion, the Coordinating Ministry for Economic Affairs has stated. "Actually, if we don't brake (the realization) can be surpassed," said Deputy of Macro Economy and Finance at the Coordinating Ministry of Economic Affairs Iskandar Simorangkir on the socialization of KUR implementation guidelines in Jakarta, Tuesday.

If the realization of KUR distribution was in excess, the government would not pay subsidies to banks or distributor agencies, according to him.

Even so, there were several banks and distributor agencies that exceeded the realization, but the government tolerated it, Iskandar admitted.

"Because the budget is still sufficient, we still agree," he said.

The government reduced the KUR interest rate from 24 percent in 2008 to seven percent per year in 2018.

In 2020, the government will again reduce the KUR interest rate to six percent per year with an increased ceiling from Rp140 trillion to around Rp190 trillion.

Iskandar detailed the realization of KUR 2019 absorbed by 4.71 million debtors throughout Indonesia.

The KUR realization and target since 2016 has increased. In 2017 it realized Rp96.7 trillion from the target of Rp110 trillion, and in 2018 it reached Rp120.3 trillion from an Rp120 trillion target.

KUR for the trade or non-production sector in 2019 began to decline reaching 48.5 percent from 53 percent in 2018 due to the validity of the KUR realization target for the production or non-trade sector since 2017.

KUR realization of the production sector as of December 31, 2019 reached 51.5 percent, which is still below the target of 60 percent.

The Coordinating Ministry for Economic Affairs details the top ten KUR disbursements by province with the most Central Java reaching Rp82.8 trillion, followed by East Java Rp78.6 trillion.

West Java with the realization of the distribution of KUR Rp59.7 trillion, South Sumatra Rp27.3 trillion, North Sumatra Rp20.2 trillion, and Bali the realization of KUR reached Rp17.7 trillion.

Other provinces are DKI Jakarta with Rp15.8 trillion, Lampung with Rp13.9 trillion, Jambi with Rp13.5 trillion and West Sumatra with Rp11.5 trillion.

There are 44 KUR distributors consisting of 38 national banks and regional development banks, while the rest are finance companies and cooperatives. 

Related news: Ministry encourages fishery businesspersons to avail KUR benefits
Related news: Tourism Ministry supports tourism-related SMEs in Labuan Bajo


Comments