Jakarta (ANTARA) - The Ministry of Cooperatives and Small and Medium Enterprises (SMEs) will accelerate the disbursement of low-interest people's business credit (KUR) for the next two months to maintain economic growth.

"For two months ahead, we will make efforts to pursue economic growth target, where the government will rely on fiscal stimuli, one of which is accelerating the disbursement of KUR," Cooperatives and SMEs Minister Teten Masduki informed here on Tuesday.

This will include several strategies, such as carrying out monitoring and evaluation to boost KUR disbursement to ensure the disbursement target is achieved, he said.

Masduki added that the government is also opening the option for synergizing KUR disbursement with the policies of ministries and agencies.

"The government is trying to ease the regulations, which still create unclear implementation in the field," he explained.

The Cooperatives and SMEs Ministry is also encouraging the acceleration of the implementation of the agricultural equipment and machinery business credit (KUA) to boost credit disbursement in the agriculture sector.

"It is supported by the optimization of regional governments in uploading the data of prospective new KUR debtors and by cooperating with KUR providers to SIKP (Credit Program Information System)," he informed.

Yet another effort is encouraging KUR providers to make extra effort by providing weekend banking services for the disbursement of KUR, he added.

Based on SIKP data, as of November 7, 2023, the disbursement of KUR reached Rp204.17 trillion (around US$13.03 billion), or 68.74 percent of the target of Rp297 trillion (around US$18.96 billion).

Statistics Indonesia (BPS) recorded that Indonesia's economic growth in the third quarter of 2023 reached 4.94 percent year on year (yoy), or less than 5 percent.

According to the BPS, the cause of the sluggish economy in the third quarter was government consumption, which experienced a 3.76 percent contraction.

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Translator: Kuntum Khaira, Raka Adji
Editor: Azis Kurmala
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