How much is the People's Business Credit Allocation?

This year, the government targets the disbursement of People's Business Credit (KUR) of Rp 120 trillion. The government has prepared two new schemes for the 2018 KUR to encourage banks to more comfortably disburse credit and achieve the target.

These schemes involve forming groups of Micro, Small, and Medium Enterprise (MSME) entrepreneurs, led by an experienced MSME in financing. Secondly, forming groups collectively in clusters using business partners for commodities such as people's plantations, livestock farming, and fisheries.

Last year's KUR disbursement reached Rp 96.71 trillion, or 90% of the targeted Rp 110 trillion. The credit was disbursed by 40 financial institutions consisting of 34 banks, four non-bank financial institutions, and two cooperative units. In the 2018 State Budget (APBN), the government targets providing Rp 18 trillion in credit program subsidies, an increase from the 2017 outlook of Rp 13.02 trillion. This increase is due to the rise in guarantee service fees and KUR interest subsidies.