Government Finds Ways to Distribute Rp 30 Trillion Micro Loans
![Darmian](https://setkab.go.id/wp-content/uploads/2015/10/Darmian-300x211.jpg)
Coordinating Minister for the Economy Darmin Nasution
Kredit Usaha Rakyat (KUR) or Small holder Business Credit, until September 2015, has just been distributed as much as Rp 4.024 trillion from the allocated budget of Rp 30 trillion. Therefore, in accordance with Presidents instruction, the Government is now on searching for the way to make KUR distribution easier.
There are several suggestions to accelerate the process more. Actually, previously there was some acceleration. The suggestions basically ask that the business sectors that are going to be financed should not be mentioned in detail. The more important thing is that the sectors have productive activities, Coordinating Minister for the Economy said to the reporters after a limited meeting on the issue of KUR, on Monday (5/10) afternoon, at the Presidential Office, Jakarta.
Coordinating Minister said the target of Rp 30-triliion KUR distribution that has been set in the middle of last August is an enormous amount of money. Furthermore, the deadline is only 4.5 months to go and the amount is higher than KUR in previous years. Nevertheless the interest rate is quite low, which is 12% per year.
With previous experiences that is boosted by the whole available capabilities, Darmin estimated if there is no other breakthrough until the end of this year, the distribution realization of KUR will only reach Rp 19.24 trillion, and it leaves remaining amount of around Rp 11 trillion.
According to Darmin, one reason behind the low realization of KUR distribution is KUR for Indonesian migrant workers (TKI). There was a problem in regulation, for example TKI in Hongkong are not given discretion to open an account in local bank.
Therefore, Darmin added, the process to open an account could be conducted when TKI are attending training in Indonesia and the account should be made in a prudential manner.
We could simplify the thing, the TKI could become a customer of BNI in Hongkong branch office and he/she could communicate with sms banking, Darmin said.
The point is to facilitate TKI so that they can have credit on their account when they depart, because in fact, they borrow money from foreign bank with the interest rate higher than KUR. Evenmore, the TKI could borrow money to start other activites when they return to Indonesia rather than working as TKI again. (SLN/RAH/ES)(RAS/LW-Naster/Sy)