The total smallholder business credit (KUR) channeled in the year ended September 20, 2021 has reached Rp183.78 trillion, or 64.48 percent of the targeted Rp285 trillion, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

The KUR was channeled to 4.90 million debtors, he informed in a written statement released on Friday.

He said the KUR channeled in the year to September 20, 2021 took the total outstanding KUR to Rp322 trillion since August 2015, with non-performing loans (NPLs) reaching 1.14 percent.

“The KUR channeled is expected to contribute to national economic recovery,” he added.

He said the KUR channeled during the COVID-19 pandemic in 2020 totaled Rp198.53 trillion, well above the pre-pandemic level of Rp140.1 trillion recorded in 2019.

The minister said the government has continued to support micro, small, and medium enterprises (MSMEs) to help them rise amid the COVID-19 pandemic. The support has included relaxing the KUR policy, including raising the ceiling for non-collateral KUR from Rp50 million to Rp100 million, he added.

In addition, the government has also raised the KUR interest subsidy by 6 percent in 2020 and 3 percent in 2021, deferred KUR principal installments, extended the loan period, and relaxed administrative requirements, he noted.

“In fact, the target of channeling KUR for 2021 has been raised to the tune of Rp285 trillion,” Hartarto said.

Source: Antara News