- In an attempt to boost the development of Indonesia’s micro-, small- and medium-scale enterprises, the government has decided to roll out several policies that specifically address the provision of People’s Business Credit (Kredit Usaha Rakyat – “KUR”). The new policies are set to be officially introduced by 1 January 2020.
- The new policies break down as follows: 1) Reducing the KUR interest rate from 7% into 6%; 2) Increasing the KUR ceiling threshold from IDR 140 trillion to 190 trillion, which will subsequently be further increased up to IDR 325 trillion by 2024.
- In addition, the government is also set to double the maximum amount of KUR that can be utilized by micro-debtors from IDR 25 million to 50 million per debtor. Meanwhile, KUR for debtors operating within the trading sector has now been increased from IDR 100 million to IDR 200 million per debtor. Moreover, the KUR available to debtors operating within the manufacturing sector is now unlimited.
- In recent years, the government has revised its KUR policies on a continuous basis. These policies have, on the whole, been generating highly positive results. Indeed, statistics reveal that the total realization of accumulated KUR distribution during the 2015 t0 2019 period reached IDR 449.6 trillion, with IDR 158.1 trillion still outstanding. Meanwhile, the ratio of non-performing loans has remained stable at around 1.23%.
- According to Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, the country’s low-income citizens benefit the most from the provision of KUR, a fact which can be seen clearly in the KUR distribution figures, which are dominated by micro-scale debtors (64.4%), followed by small-scale debtors (35%) and migrant workers (0.4%). (setkab.go.id)
......
Subscribe to read more legal analysis.
Hukumonline Pro Intelligence
Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda
*Syarat dan ketentuan berlaku
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
