Minister of Finance Assigned KUR Interest Subsidy of 3 – 12 Percent

Minister of Finance Assigned KUR Interest Subsidy of 3 – 12 Percent

Minister of Finance Bambang Brodjonegoro has determined the amount of interest subsidy to People Business Credit (KUR), which will be given to the executive banks. This provision is contained in Minister of Finance Regulation Number: 146/PMK.05/2015 on Procedures for the Implementation of interest subsidy to People Business Credit, which is determined by the Minister of Finance Bambang Brodjonegoro on July 30, 2015.

“Payment of interest subsidy is implemented through the cooperation of KUR financing as set forth in the Financing Cooperation Agreement between the Budget Authority (KPA) established by the Minister of Finance with the Executive Bank (KUR executing bank that  appointed/designated by the Coordinating Minister for Economic Affairs as Chairman of the Committee of Policy on Financing for Micro, Small and Medium Enterprises),” reads Article 4 of PMK.

This Regulation confirms, KUR distribution ceiling stipulated by Committee of Policy and outstanding KUR in progress is the basis for calculating the upper limit of interest subsidy payments.

As for the excess of KUR distribution, which exceeded the ceiling of the annual distribution of KUR not given the interest subsidy.

For the first time, the amount of interest subsidy paid to the Executive Bank determined as follows: a. Microcredit 7% (seven percent) per year; b. Retail loans 3% (three per cent) per year; and c. Credit Manpower Indonesia 12% (twelve percent) per year.

According to Article 8 paragraph (1) PMK No. 146 / PMK.05 / 2015, the payment of interest subsidy is based on the amount of interest subsidy multiplied by KUR outstanding from time to time.

“This Regulation comes into force on the date of enactment,” reads the Article 8 of Ministry of Finance Regulation that promulgated by Minister of Justice and Human Rights, Yasonna H. Laoly on July 30, 2015.  (Humas Kemenkeu/ES)