Jakarta (ANTARA) - Indonesia's Financial Services Authority (OJK) recorded that realization of the micro credit program (KUR) until July 5, 2021, had reached Rp128.46 trillion, or 50.77 percent of the total target of Rp253 trillion, according to a top government official.

"Given to 3.45 million debtors, the outstanding stands at Rp271.3 trillion, with nonperforming loans (NPL) of 0.88 percent," Deputy for Macroeconomic and Financial Coordination at the Coordinating Ministry for Economic Affairs Iskandar Simorangkir stated during the Bisnis Indonesia Economic Outlook webinar on Tuesday.

Taking a cautious stance is also needed because this NPL cannot be separated from the relaxation of the OJK policies to anticipate pressure on MSMEs, he said.

Simorangkir also noted that the realization of KUR in 2021 was better than before the COVID-19 pandemic. In 2019, the OJK recorded that the realization of KUR had reached only Rp140 trillion, with 4.1 million debtors, while in 2018, it was only Rp120.3 trillion, with 4.4 million debtors.

"The lesson we can learn from this is that MSMEs are moving. Hence, this is our basic capital to go further. However, we cannot run fast without paying attention to the health aspect," Simorangkir emphasized.

Related news: Micro-credit realization reaches Rp111.99 trillion

He further detailed the distribution of KUR as of July 5 based on the type of KUR, specifically the distribution of Super Micro KUR was realized at 4.57 percent, or Rp5.88 trillion, with 667.9 thousand debtors. Meanwhile, the distribution of Micro KUR was realized at 61 percent, or Rp78.35 trillion, with 2.56 million debtors.

The realization of small KUR had reached 34.41 percent, or as much as Rp44.2 trillion, with 223 thousand debtors. The realization of new KUR for migrant workers had reached 0.02 percent, or Rp22.85 trillion, with 949 debtors.

Simorangkir also noted that bank credit had improved, with maintained NPL. Third Party Funds (DPK) had increased, from Rp6,789.5 trillion in April to Rp6,837 trillion in May, or grew by 10.73 percent (yoy). Meanwhile, commercial bank loans increased to Rp5,514.4 trillion, with gross NPL maintained at 3.35 percent.

In connection with precautionary measures against the impact of the implementation of the Java-Bali Emergency Community Activity Restrictions (PPKM), the government extended the provision of a three-percent interest subsidy until December 2021 for 3.3 million debtors. Related news: Government raises ceiling for KUR without collateral to Rp100 million

Translator: Kuntum K, Azis Kurmala
Editor: Rahmad Nasution
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