JAKARTA - The government will raise the People’s Business Credit (KUR) ceiling gradually in the next five years with a disbursement target of Rp 325 trillion by 2024.
“We would like to encourage higher economic growth [because] MSMEs contribute 60% of our GDP,” said Deputy for Macroeconomic Coordination at the Coordinating Ministry for Economic Affairs Iskandar Simorangkir in his speech at the 2020 KUR Programme Socialisation, Tuesday (21/1).
The target increase is also accompanied by policy relaxation such as increasing the maximum ceiling and the ceiling accumulation of Micro KUR.
“The maximum ceiling of Micro KUR has been raised from Rp 25 million to Rp 50 million per debtor, while the ceiling accumulation of Micro KUR in the trade sector has been raised from Rp 100 million to Rp 200 million,” explained Mr Simorangkir. The changes, he added, have been effective since January 2, 2020.
In addition, the government has also lowered KUR interest rates to 6% and raised the KUR disbursement target by 36% to Rp 190 trillion this year. (MS)