KUR Disbursement Reached 55.2% of Target by June 2018

To empower Micro, Small, and Medium Enterprises and Cooperatives (MSMEs), create jobs, and alleviate poverty, the government issued a policy package aimed at boosting real sector growth. One of the measures is to improve access to financing for the public by providing credit guarantees for MSMEs through the People's Business Credit (KUR).

Data from the Coordinating Ministry for Economic Affairs shows that Bank BRI is the largest KUR disbursing bank, reaching Rp 44.51 trillion with 2.21 million debtors. This is followed by Bank BNI at Rp 8.71 trillion with 59,000 debtors, and then Bank Mandiri at Rp 8.23 trillion with 129,000 debtors.

The realization of KUR disbursement from January to June 2018 reached Rp 64.63 trillion, or 55.2% of the target of Rp 117.08 trillion. The KUR outstanding balance reached Rp 58.2 trillion with 2.45 million debtors and a non-performing loan (NPL) ratio of 0.01%. For the KUR program, the government subsidizes the interest rate for micro KUR at 10.5%/year, so debtors are only charged 7%/year. Meanwhile, for small KUR, the government subsidizes the interest rate by 5.5%/year.