JAKARTA. The Indonesian government has cut the People's Business Credit (KUR) interest by 1% to 6% starting in early 2020.
At the same time, the government also increased the quota for KUR by 35.7% to Rp 190 trillion this year, from an initial target of Rp 140 trillion. Even in 2024, KUR distribution is targeted to reach Rp 325 trillion.
Tjandra Lienandjaja, an analyst of Mandiri Sekuritas, said that the cut was not accompanied with information of how much subsidy will be provided by the government. He estimates that the government will subsidize 10.5% for micro-scale business and 5.5% for Small Medium Enterprises (SME).
Lienandjaja added that currently PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), is still the largest KUR distributor in Indonesia. "About 9.1% of the loan distributed by the company to date," he said on Wednesday (13/11) today. (KR/AR)