PIPELINING OF PEOPLE’S BUSINESS CREDIT STILL NOTABLY LOW

The Government admitted that realization of People’s Business Credit (KUR) by September 2015 came to Rp.4.02 trillion or around 13.4% of the all-year target of Rp.30 trillion. Coordinating Minister Darmin Nasution stated on Tuesday (6/10) that pipelining of KUR by September 2015 was still relatively low which was because the new program could only be executed on August 18, 2015.

Darmin mentioned that by September 30, 2015, PT Bank Rakyat Indonesia had pipelined KUR worth Rp.3,51 trillion; and yet the amount allocated to that bank was Rp.21,4 trillion. Darmin said that extention of KUR by PT Bank Mandiri (Persero) tbk was also still low, i.e. Rp.3.2 trillion. Darmin also said that with the present performance it was targeted that by year end the target attained would be only Rp.19,24 trillion or around 21.37% of target.

In view of the above the Government was beginning to aim at Indonesian migrant workers (TKI) abroad as target till end of year. Darmin said that so far many TKI applied for credit to overseas banks. For that matter the Government planned to extend credit at low interest.

KUR credit would be given to TKI who had just arrived home from abroad. The credit would be given that the TKI would be motivated to run business at home. Furthermore Darmin said that banks would make it was easy for TKI to open a savings account. The way it had been difficult to open account in national banks.

Besides TKI, the KUR credit was also expected to upgrade small business (UKM) whereby they could compete better in Asean Economic Society (MEA) to begin in January 2016. The debitors were expected to expand business whereby they could contribute to propelling economy. About KUR credit interest the 12% interest per year for 2015 would be reduced to 9% interest in 2016.

Meanwhile businesspeople rated that in the process of KUR absorption, it was necessary for the Government to map out the market and run intensive illumination. Head of UKM section of APINDO Nina Tursinah said that the program must be well targeted and easily applicable.

The Government must attend to credit for small industry whose business was export oriented. Furthermore she said that supposedly the Government implemented the KUR interest of 9% sooner to strengthen IKM competitiveness.

The Government was also asked to enhance control on KUR distribution to micro, small and medium business. (SS)

Business News - October 9, 2015