Gov’t: Smallholder Business Credit Realization for Agriculture Sector Reaches Rp42.7 Trillion

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 26 Juli 2021
Category: News
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Coordinating Minister of Economic Affairs Airlangga Hartarto delivers press statement after attending Limited Meeting on Smallholder Business Credit (KUR) Loan for Agriculture Sector (26/07/2021) (Photo by: PR of Cabinet Secretariat)

Amid COVID-19 pandemic, the Government has announced it recorded an increase in distributing this year’s Smallholder Business Credit (KUR). The number came close to the normal pattern before COVID-19 pandemic with an average distribution of Rp21.84 trillion per month.

“The increase in KUR caused by Indonesia’s economy that starts to rebuild and low interest rates, adding that, the Government also provides additional KUR interest subsidies amounting three percent,” Coordinating Minister of Economic Affairs Airlangga Hartarto said on Monday (26/7).

KUR realization for 3.87 million debtors from January to 25 July 2021 increased 56.58 percent or Rp143.14 trillion of the target of Rp253 trillion, according to Airlangga.

In addition to three percent interest of KUR subsidies, Airlangga added, the Government provided Rp100 million non-collateral KUR. Moreover, the Government also provided special KUR facilities for agriculture, other productive commodity sectors, payment delay for debtors, and extension of payment period.

Airlangga further said that KUR realization for agriculture sector this year has rapidly increased with total realization of Rp42.7 trillion of the target of Rp70 trillion.

Furthermore, Airlangga said that KUR for agricultural sector in 2021 is distributed to several subsectors including oil palm plantation (Rp9.5 trillion), rice farming (Rp7.8 trillion), plantation and forestry (Rp5.5 trillion), horticultural farming (Rp5.2 trillion), cattle breeding and cultivating (Rp3.9 trillion), sheep and goat breeding and cultivating (Rp3.5 trillion), palawija/ crops planted as second crop farming (Rp2.7 trillion), mix farming (Rp2.6 trillion), as well as other breeding, seeding, cultivating services (Rp1.1 trillion). (TGH/UN) (AP/LW)

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