"KUR until June 14, 2021 has reached Rp111.99 trillion, and this is 44.26 percent of the target that has been increased to Rp253 trillion given to 3.06 million debtors," he informed at the BPK RI Series II webinar in Jakarta on Tuesday.
He said the realization of KUR since August, 2015 has reached Rp260.25 trillion, with the non-performing loan (NPL) ratio pegged at 0.88 percent.
Based on the types, Super Micro KUR accounted for 4.70 percent of the total credit disbursed, Micro KUR 61.86 percent, Small KUR 33.42 percent, and the microcredit program (KUR) for Indonesian migrant workers (TKI) 0.02 percent, the minister said.
While Super Micro KUR of Rp5.26 trillion was provided to 596 thousand debtors, Micro KUR of Rp69.28 trillion was disbursed to 2.27 million debtors, he disclosed.
Small KUR of Rp37.42 trillion was provided to 189 thousand debtors, and KUR TKI of Rp22.53 billion was distributed to 927 debtors, he added.
Hartarto said the KUR scheme has been revised with unsecured credit increased to Rp 100 million from Rp 50 million at President Joko Widodo’s behest.
Credit allocation to small businesses, which usually accounts for just 18 percent of the total credit for the whole year, has now been bumped up to 30 percent, he added.
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"If the amount of credit in 2024 is close to Rp six thousand trillion, then the target is, of course, to be Rp1,800 trillion. The government's orientation and alignment with MSMEs is already so great," he said.
Earlier, at a work meeting of the Trade Ministry, Hartarto had explained that the UMKM plays a central role in creating employment and boosting national exports.
The UMKM sector can grow significantly with the use of digital technology, which is currently growing at a swift pace in Indonesia, and its value is projected to reach US$124 billion by 2025, he said.
Moreover, with the pandemic limiting face-to-face activities, digital transformation is sorely required to keep economic activities on track, he added. (INE)
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Translator: Astrid FH, Azis Kurmala
Editor: Fardah Assegaf
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