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KUR involves finance companies, eyes Rp8 trillion/month
Micro lending: A worker sprays paint onto a piece of furniture in Sarakan, Tangerang, Banten
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span class="caption">Micro lending: A worker sprays paint onto a piece of furniture in Sarakan, Tangerang, Banten. The Cooperatives and Small and Medium Enterprises Ministry has raised the lower bound requirement of micro credit program (KUR) disbursement to Rp 25 million from Rp 20 million without collateral. (Antara/Lucky R.)
Several multi-finance companies will soon enjoy a new role as lenders in the people's business loan (KUR) program, despite their non-bank status, as part of the government's efforts to disburse at least Rp 8 trillion (US$578.7 million) of KUR per month.
Financial Services Authority (OJK) chairman Muliaman Hadad said the institution had selected multi-finance companies that complied with certain requirements in terms of financial strength and business portfolio.
"It starts this year. Tomorrow, we will submit the names of the multi-finance companies," he said after a limited meeting at the State Palace in Jakarta on Thursday, adding that those companies had to be in a healthy condition and have sufficient experience in micro loans.
Earlier, the government allocated disbursement targets for each participant in the subsidized loan program. State-owned lender Bank Rakyat Indonesia (BRI) remains dominant with a mandated KUR disbursement of Rp 67.5 trillion.
Bank Mandiri comes second with a mandated KUR disbursement of Rp 13 trillion, followed by Bank Negara Indonesia (BNI) with Rp 12 trillion. Private lenders, including the forthcoming multi-finance companies, are expected to disburse Rp 4 trillion.
"The KUR portion for those multi-finance companies will be adjusted according to their ability, as they are new finance institutions [in joining the program]," he said, adding the possibility that regional development banks (BPD) could join in KUR distribution.
Coordinating Economic Affairs Minister Darmin Nasution said the disbursed KUR in January, on a month-to-date basis, was around Rp 6.5 trillion to Rp 7 trillion.
"Our target is Rp 100 trillion [in 2015], it means Rp 8 trillion must be disbursed every month. Currently we have Rp 6.5 trillion to Rp 7 trillion [disbursed] in January," he said.
Meanwhile, Bank Indonesia Governor Agus Martowardojo applauded the reduction in the KUR interest rate from the previous 21 percent to 9 percent, calling it "a breakthrough" for supporting small and medium enterprises. (ags)(+)
