The Financial Service
Authority (OJK) supported Government’s plan to broaden scope of distribution of
people’s Credit (KUR) to new business lines, start up business, including
various creative industry sector and technology-based industries.
Naturally not just the scope would be broadened but
number of banks would be increased as well, hopefully to include Provincial
Development Bank (BPD)” this was stated by the Chairman of the Board of
Commissioners of OJK Muliaman D, Hadadafter attending limited meeting on KUR at
the President office on Monday.
However Muliaman remained that the targeting be done
selectively with reference to recipient’s performance of last year.
OJK also insisted that pipelining of KUR not to involve
big Government’s banks but also to include other financial institutions.
Not only BPR, but other financial institutions like
financing agencies, cooperatives, etc be authorized to distribute KUR. The
expansion was not only by area but also on the basis of linkage principle to
expand absorption while still stressing on prudence.
With expansion of industrial areas, and change in
distribution mode, the KUR program was expected to be maximized this year.
“next year, as the Government planned to increase the distribution mode by
quantity, with foundation which was more accommodative, the absorption could be
expected to by higher next year” Muliaman remarked.
Sometime ago at the limited meeting on People’s Business
Credit President Jokowi insisted on making breakthrough in accelerating KUR
because according to data realization of credit was still low. President Jokowi
expected in the next 3 months: October, November, December there would be
significant breakthrough. “Small business must be protected and strengthened to
strengthen their competitiveness.”
President Jokowi said that by 2015. The Government had
around Rp.30 trillion for KUR to be distributed to small business, with credit
interest reduced from 22% to 12%. (SS)
Business News - October 9, 2016
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