Gov’t to Continue Providing Interest Subsidy for Smallholder Business Credit in 2021
Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo by: Cabinet Secretariat PR)
The Government has announced it will next year will continue to boost disbursement of Smallholder Business Credit (KUR) in order to support Micro, Small, and Medium-sized Enterprises (MSMEs) to increase national economic growth and to materialize economic equity.
The statement was made by Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday (28/12).
“In speeding up economic recovery during the pandemic, the number of MSMEs eligible for KUR program will be increased next year. Thus, budget allocated for the program in 2021 will also increase by Rp7.6 trillion,” he said.
In addition, he continued, the Government will provide additional interest subsidy to KUR program of three percent for six months and increase credit ceiling by Rp33 trillion to Rp253 trillion.
“The disbursement has been a great help for the MSMEs to recover. For that reason, the Government will continue to support the MSMEs to rebuild national economy,” he said, adding that the Government has provided additional interest subsidy of six percent in 2020, making interest rate of KUR program zero.
As of 21 December 2020, Rp188.11 trillion out of a target of Rp190 trillion has been disbursed for KUR program to 5.81 million debtors with non-performing loan (NPL) of 0.63 percent.
Policies in KUR program that have been realized by 21 December 2020 are, among others:
- Providing additional interest subsidy to 7.03 million debtors with a total of outstanding debit balance amounting Rp187.5 trillion.
- Granting postponement of principal installment to 6 months to 1.51 million debtors with a total of outstanding debit balance amounting Rp48.18 trillion.
- Relaxing the loan by extending loan due date to 1.51 million debtors with a total of outstanding debit balance amounting Rp47.31 trillion.
(COORDINATING MINISTER FOR ECONOMIC AFFAIRS PR/UN) (RAS/MUR)
