This means that (KUR) will grow 40 percent as compared to Rp198.5 trillion in 2020.
Jakarta (ANTARA) - The government has projected the realization of smallholder business credits (KUR) in 2021 to reach 99.9 percent of the targeted Rp285 trillion, according to an official.

"This means that (KUR) will grow by 40 percent as compared to Rp198.5 trillion in 2020," Deputy for Macro Economy and Finance Coordination at the Coordinating Ministry for Economic Affairs Iskandar Simorangkir stated at an event "Reflection of Achievement 2021 and Economic Outlook 2022" in Jakarta on Thursday.

Simorangkir remarked that the amount of KUR extended to 7.35 million debtors in the year ending December 27, 2021, reached Rp278.71 trillion, or 97.79 percent of the target.

Based on their types, KUR distributed in 2021 comprised Super Mikro worth Rp10 trillion, or 3.59 percent; KUR Mikro worth Rp177.84 trillion, or 63.81 percent; Small KUR worth Rp90.84 trillion, or 32.59 percent; and KUR for Indonesian Migrant Workers Placement (TKI) worth Rp27.81 billion, or 0.01 percent.

Overall, the total outstanding KUR between August 2015 and December 27, 2021, reached Rp373.35 trillion distributed to 32.07 million debtors, he remarked.

Despite the amount of KUR distributed being quite large, the ratio of non-performing loans (NPLs) to KUR was relatively low at 0.98 percent, he remarked.

"The figure is far below (the ratio of) NPLs to national credits," he stated.

Simorangkir noted that the demand for KUR during the COVID-19 pandemic was very high since micro and small businesses were among the most rapidly reviving businesses.

In 2021, the demand for KUR averaged Rp23 trillion per month, he noted.

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Translator: Agatha Olivia V, Suharto
Editor: Sri Haryati
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