As one of the solutions during the current economic downturn, the government seeks to further expedite the distribution of Micro Business Credit (KUR). In the Cabinet Meeting on Economics, it was decided that for small and medium enterprises, the access will be made easier to obtain KUR, either for individual business or specific business entity.
After official opening the Sriwijaya Exhibition III at Plasa Pameran Industry, the Ministry of Industry, on Tuesday (October 6), Ministry of Industry Saleh Husin said that one of the results of the Meeting on Monday (October 5) is that ministers related to economics will cooperate with banks, both the ones incorporated under the State-Owned Banks Association (Himbara), or private banks, he said, accompanied by Director general of Small and Medium Industries (SMI) of the Ministry of Industry, Euis Saedah.
“In addition to expending access of KUR recipient, one of the subjects discussed is how to make prospective Indonesian Migrant Workers (TKI) before they leave to be equipped with some kind of capital. About the technicalities, such as what will be done by the executing banks, the migrant workers will be facilitated so that before they depart to the country of placement, they can get some of credit, in the form of KUR.
To that end, when attending training program in Indonesia, they will be helped to open an account, so that later in the placement country, they can transact using the facilities mobile banking facilities. In fact, during this time it is difficult for them to open an account in the country where they are stationed, as it is bound by the “not your customers” rule”, she said.
Currently, the government seeks to improve the distribution of KUR, given that until 30 September 2015, the distribution has just reached about 13% of portfolio target of IDR 30 trillion. In 2016 the government will allocate approximately IDR 90 trillion for the distribution of KUR with an interest rate of only 9 percent. The government, as stated by President Joko Wododo, is committed to continue to improve the allocation of KUR, so that entrepreneurs engaged in micro, small, and medium businesses will have competitiveness.
According to the President, the strengthening and protection of SMEs becomes an important thing to do at this time, considering that it has the potential to be one of the drivers of economy in the society. For that, SMEs need to have easy access to capital to expand its business. Earlier, the President also asked all ministers to make a breakthrough to increase KUR distribution this year. The President also requested the expansion of the sector that can access KUR, so that trading business can use it, KUR restrictions on production business during this time are considered to be one of the obstacles in its distribution.
On the occasion, Minister of Industry asked the national creative industries, especially those located in South Sumatra, to continue to be creative, to invent new products, and to improve shortcomings to improve quality, so it will be able to compete with similar products from other countries.
Meanwhile, Director General of SMI, Euis Saedah, said that it has made a strategic step in the development of creative industries which she calls the “four steps plus one”, i.e. strengthening of skills or competence of craftsmen (human resources), facilitating production techniques by optimizing equipment, strengthening the existence by optimizing equipment, strengthening the existence of standards and protecting their works with Intellectual Property Rights. While, the only addition is market strengthening in the form of exhibitions in various place, especially at Plasa Pameran Industri.
“Through the Exhibition, it is expected to provide motivation to participants or artisans in South Sumatra to become entrepreneurs who are strong, professional, creative and innovative so as to encourage the growth rate, strengthening, and improving the global competitiveness that we seek,” she said. the Exhibition, which was held from 6 to 9 October 2015, is followed by 46 SMI artisan assisted by the Department of Industry and trade of South Sumatra Province that displays superior products, among others, songket, wood crafts, rattan, wicker, ceramics, jumputan, as well as typical food of South Sumatra, like pempek and pindang with fish crackers. (E)
Business News - October 9, 2015