Some Rp185 trillion is still in the bank. This can be used. However, again, if you want to borrow it, (then) calculate it first
Jakarta (ANTARA) - President Joko Widodo (Jokowi) has invited micro and small enterprises (MSEs) to utilize the smallholder business credit (KUR), with an interest rate of only three percent, in order to strengthen business capital and capacity.

"While this is (part of the) National Economic Recovery (PEN Program) fund due to the pandemic, the interest is still three percent per year. However, be careful if (you are) borrowing credit from the bank; (please) calculate, do not take it recklessly," Jokowi stated at the event for handing over the Single Business Number/Business Identification Number (NIB) for Individual MSEs here on Wednesday.

The president expounded that realization of the government's KUR program had only reached 49 percent of the total budget of Rp373 trillion in 2022.

"Some Rp185 trillion is still in the bank. This can be used. However, again, if you want to borrow it, (then) calculate it first," he remarked.

He advised MSE players to exercise caution in borrowing funds from banks, as they need to be cautious about the ability and time to make repayments. Jokowi also suggested that borrowed funds should be for productive needs and not consumptive.

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"There is an opportunity to get (credit) of Rp200 million. (However, if) Rp100 million (of the credit is spent) to buy a car, (then) I guarantee no one can return (the loan)," he emphasized.

Moreover, he lauded the intermediation function of the national banking. He noted that as of April 2022, credits from banks that had been disbursed amounted to Rp1,195 trillion.

Furthermore, Jokowi said, MSE actors already having NIB will find it easier to get funding sources from banks and obtain government assistance programs.

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The head of state revealed that between August 2021 and July 2022, at least 1.5 million NIBs were issued via the Online Single Submission (OSS).

"Before the existence of OSS, at least two thousand permits were issued per day. Now, it has reached the figure of seven thousand to eight thousand per day," he remarked.

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Translator: Indra P, Kenzu T
Editor: Fardah Assegaf
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