Finance Minister: UMi Financial Assistance Program to Complement KUR Program

Minister of Finance Sri Mulyani Indrawati reads report when accompanying President Jokowi reviews the distribution of UMi, at Central Market, Gorontalo City, Friday (1/3). (Photo: Jay/PR)

Minister of Finance Sri Mulyani Indrawati stated that the Ultra Micro (UMi) Financing Program which aims to reach the ultra-micro entrepreneurs is a complement to the already familiar Smallholder Business Credit (KUR) Program.

“The UMi is intended for the ultra micro-enterprises with loans given under Rp10 million and similar interest rate as the KUR. It is quite affordable compared to other financial assistance schemes,” Sri said while accompanying President Jokowi visiting the Central Market, in Gorontalo City, Gorontalo Province, Friday (1/3).

Meanwhile for the UMi budget, according to the Minister, is taken from the State Budget (APBN) with a total amount of Rp7 trillion, starting from 2017. The budget managed by the Government Investment Center (PIP) which stands under the Ministry of Finance.

“The budget then infused to various institutions that have the capacity to distribute the UMi, namely PT Pegadaian, PNM, and Bahana Artha Ventura,” Sri explained.

In Gorontalo Province alone, there are 273 debtors with a total loan of Rp1.89 billion with details of: 198 debtors with a total loan of Rp1.38 billion in Gorontalo Regency; 27 debtors amounting to Rp190 million in Bone Bolango Regency; 24 debtors with a total of Rp150 million in Boalemo; and Rp82 million for other districts including North Gorontalo and Pohuwato, respectively.

Sri further explained that from the total UMi budget of Rp7 trillion, currently only Rp2 trillion that has been distributed. “The Government is actually have allocated the budget but we still encounter some problems in the distribution process. That is what we need to evaluate” she added. (UN / JAY / ES)

Translated by: Estu Widyamurti
Edited by: Yuyu Mulyani