Lending Portion for MSMES Targeted to Rise by 30% in 2024: Coordinating Minister

    Wahyu Dwi Anggoro - 06 April 2021 12:52 WIB
    Lending Portion for MSMES Targeted to Rise by 30% in 2024: Coordinating Minister
    Illustration (Photo:Medcom.id)



    Jakarta: President Joko Widodo (Jokowi) has ordered an increase in lending portion of MSMEs by up to 30 percent of national banking loan in 2024.

    For the record, the current lending portion of this sector reaches around 18 to 20 percent.






    "The President has ordered us to make a big leap in lending for MSMEs," said Coordinating Minister for Economic Affairs Airlangga Hartarto here on Monday, as quoted from the Cabinet Secretariat's website.

    According to Airlangga, the realization of People’s Business Loans (KUR) last year reached Rp198.53 trillion or more than 104 percent of the target.

    Last year’s KUR distribution consists of Supermicro KUR (Below Rp10 million) that has been distributed Rp8,49 trillion or about 4 percent, Micro KUR (Rp10-50 million) amounting to Rp128,9 trillion or about 65 percent, Small KUR (Rp50-500 million) amounting to Rp59,06 trillion, and Indonesian Migrant Workers (TKI) KUR amounting to Rp372 billion.

    Airlangga also cited an example of MSMEs that previously earned an unsecured loan for Rp50 million and is now targeted to earn an unsecured loan Rp100 million.

    The Minister also said that the President has also ordered to keep the interest competitive through loaning program from two state-run loan guarantors, PT Asuransi Kredit Indonesia (Askrindo) and Perum Jaminan Kredit Indonesia (Jamkrindo) or ro provide interest subsidies for Regular KUR apart from the National Economic Recovery Program (PEN).


    (WAH)

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