Gov’t Sets 7% Interest Rate for Smallholder Business Credit in Tourism Sector

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 9 Agustus 2018
Category: News
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9AgsCoordinating Ministry for the Economy has announced low interest credit/financing scheme for tourism sector, namely for Smallholder Business Credit (KUR) loan with 7 percent interest.

Coordinating Minister for the Economy Darmin Nasution has expressed his hope that the scheme can boost development in tourism sector, particularly for 10 Indonesian Priority Tourism Destinations and 88 National Tourism Strategic Areas.

“KUR for tourism sector can be granted to a person, and/or an entity, and the credit ceiling is adjusted to their business needs, both applied in Micro and Small KUR,” Darmin said during a Coordinating Meeting on Smallholder Business Credit (KUR) in Jakarta, Wednesday (8/8).

Previously, Deputy for Macro-Economic Coordination and Finance of the Coordinating Economic Minister’s Iskandar Simorangkir explained that performance of KUR in the First Semester of 2018 recorded a positive result. Based on actualization data compiled by the Financing Policy for Micro, Small, and Medium Enterprises (MSMEs) Committee Secretariat, from 2015 to 30 June 2018, business credit amounting Rp277.4 trillion with outstanding worth of Rp130.8 trillion has been distributed to 11.8 million MSMEs.

“Such achievement was also coupled with Non-Performing Loan (NPL) rate that is maintained at 1.06%,” Iskandar added.

In addition to that, KUR amounting Rp64.6 trillion or equivalent to 55.2 percent of the distribution target in 2018 which is Rp117.08 trillion has been distributed in a period between 1 January 2018 to 30 June 2018.

According to Iskandar, that positive performance was followed by Non-Performing Loan (NPL) rate that is maintained at 0.01%. In addition, the Government has also managed to maintain the dominance of the distribution portion of the credit issued to micro enterprises.

“It is indicated in the distribution of KUR for Micro Enterprises amounting Rp41 trillion or 63.5 percent of the total KUR distribution, KUR for Small Enterprises amounting Rp23.3 trillion or 36.1 percent, and KUR for Indonesian migrant workers (TKI) amounting Rp231 billion or 0.4 percent of the total KUR distribution,” Iskandar said.

Regarding KUR distribution based on regions, Java Island still dominates, recording the highest distribution rate of  54.9%, followed by Sumatra (19.4%), Sulawesi (10%), Bali & Nusa Tenggara (7.1%), Kalimantan (6.4%), and Maluku & Papua (2.2%.).

Furthermore, in order to boost development in tourism sector, particularly in production sector and to meet the KUR distribution target in 2018, Financing Policy for Micro, Small, and Medium Enterprises (MSMEs) Committee Secretariat has raised the distribution KUR ceiling to Rp123.53 trillion in 2018.

The rise, which is based on the recommendations from Financial Services Authority (FSA), is expected to help MSMEs to get better access to low-interested loan. (Coordinating Minister for the Economy PR Division/ES) (RAS/EP/Naster)

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