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Microcredit facility sees rise in micro, small producer borrowers: Minister
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Coordinating Economic Minister Darmin Nasution (center), accompanied by Transportation Minister Budi Karya Sumadi (right) and Cabinet Secretary Pramono Anung, speaks to journalists at the State Palace in Jakarta on June 15. (JP/Anton Hermansyah)
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oordinating Economic Minister Darmin Nasution says that more micro, small and medium producers have taken out loans through the microcredit program (KUR) this year, with the program seeing a rising trend in traders and service business utilizing the facility.
More than 30 percent of micro, small and medium producers have taken out KUR loans to date, compared to 24 percent of producers in 2016, Darmin said.
“We’ve promised the producers that we will allocate loans for 40 percent of them this year,” he said during a hearing with the House of Representatives in Jakarta on Wednesday.
Read also: New KUR system creates higher costs for govt“It hasn't reached 40 percent yet, but it is already more than 30 percent, so we believe that by the yearend, we can offer the facility to more producers, not only to traders.”
The government has allocated Rp 110 trillion (US$8.2 billion) for the KUR program this year and is targeting more producers, like farmers and small, micro and medium manufacturers to benefit from the program and to help them raise productivity.
The loan is offered at a 9 percent fixed interest rate and is made available through all state banks, while the government has also partnered with several private banks to disburse the loan. (bbn)
