Gov’t to Provide Super-Micro People’s Business Credit for Laid-Off Workers, Productive Housewives

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 13 Agustus 2020
Category: News
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Coordinating Minister for Economic Affairs Airlangga Hartarto chairs the national committee meeting, Jakarta, Thursday (13/8). (Photo by: Coordinating Ministry for Economic Affairs)

The Government has announced it will provide a super-micro People’s Business Credit (KUR) scheme for laid-off workers and housewives running productive businesses through the Financing Policy Committee for Micro, Small and Medium Enterprises (MSMEs).

“The interest rate for super-micro People’s Business Credit (KUR) is set at 0 percent until 31 December and 6 percent after 31 December this year with a maximum loan of Rp10 million,” Coordinating Minister for Economic Affairs Airlangga Hartarto said during the national committee meeting in Jakarta, Thursday (13/8).

In the super-micro KUR scheme, the principal collateral is a project or business activity financed by KUR without additional collateral required.

The soft loans recipients should be laid-off workers and housewives running a business who meet the following criteria:

  1. Being categorized as a micro-business;
  2. The time frame for business operations is not limited to a minimum of 6 months. The business can be operated for less than 6 months with the following requirements:

Participating in mentoring programs (formal or informal); or

Join a business group; or

Have family members who already own a business.

3. Laid-off workers are not required to have a business for at least 3 months with 3 months of training as regulated in Regulation of the Coordinating Minister for Economic Affairs Number 8 of 2019 on the Guidelines for People’s Business Credit (KUR), but the business can be operated for less than 3 months or a new business with the requirements as referred to point 2.

  1. Never receiving KUR incentive.

For the next stimulus, the Government said it would set an additional KUR interest subsidy from the previous 6 percent in the first 3 months and 3 percent for the next 3 months to be 6 percent until December 2020.

“The measure is expected to speed up economic recovery in this year’s third quarter, especially through the acceleration of the business recovery of KUR recipients,” Airlangga said.

On that occasion, Airlangga said additional KUR interest subsidy during the COVID-19 pandemic will be provided to all KUR recipients with collectability 1 and 2, including restructured and non-restructured KUR recipients, as well as KUR recipients who submitted for facilities or those who did not.

“The provisions are expected to accelerate the realization of additional interest subsidy / KUR margin amid the COVID-19 pandemic,” he added.

Based on the Credit Program Information System (SIKP) data, as of 8 August the realization of KUR policy during the pandemic was proven significantly used by KUR debtors, with the following details:

  1. Additional KUR interest subsidy was provided to 5,944,348 debtors with a debit balance of Rp121 trillion.
  2. A 6 months maximum postponement of principal installment payment is provided to 1,550,009 debtors with a debit balance of Rp46.3 trillion.
  3. KUR relaxation, in the form of:

The period extension was provided to 1,557,271 debtors with a debit balance of Rp46.2 trillion.

The increase in the KUR ceiling limit was provided to 14 debtors with a debit tray of Rp3 billion.

In all parts, the realization of KUR distribution from January to 31 July 2020 has reached Rp89.2 trillion and it was distributed to 2.67 million debtors, bringing the total outstanding to Rp67.87 trillion with a non-Performing Loan (NPL) of 1.07 percent.

For the record, previously the total KUR ceiling for 2020 was planned at Rp190 trillion. During the COVID-19 pandemic, the implementation of the National Economic Recovery Program has led to an additional request for a new KUR ceiling of Rp8.87 trillion, bringing the total KUR ceiling for 2020 to Rp198.87 trillion.

“The series of stimulus policies are expected to accelerate national economic recovery by strengthening micro-household businesses, informal workers, and laid-off workers through business financing support,” he said.



Translated by: Syarifah Aisyah
Reviewed by: M. Ersan Pamungkas

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