{
    "success": true,
    "data": {
        "id": 1712993,
        "msgid": "economist-kur-interest-rate-policy-needs-to-consider-targeting-accuracy-1777639911",
        "date": "2026-05-01 19:15:50",
        "title": "Economist: KUR Interest Rate Policy Needs to Consider Targeting Accuracy",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "President Prabowo Subianto has announced plans to reduce the interest rate on Kredit Usaha Rakyat (KUR) loans to a maximum of 5% per year to alleviate the burden on small-scale borrowers such as workers, farmers, and fishermen who often fall prey to high-interest informal loans. Economist Yusuf Rendy Manilet from the Center of Reform on Economics (CORE) supports the initiative but cautions that KUR primarily targets those already in the formal system, suggesting a more effective approach would involve expanding ultra-micro financing with simpler requirements to reach the truly unbanked. He also highlights the need for enhanced financial literacy and data integration to formalise small businesses, while warning of potential risks like reduced borrower discipline due to perceived government leniency.",
        "content": "<p>Jakarta (ANTARA) - Economist from the Center of Reform on Economics\n(CORE), Yusuf Rendy Manilet, opines that the interest rate policy for\nKredit Usaha Rakyat (KUR) needs to consider targeting accuracy.<\/p>\n<p>Yusuf, when contacted by ANTARA in Jakarta on Friday, stated that\nPresident Prabowo Subianto\u2019s initiative to lower the KUR interest rate\nto 5% per year, from the previous flat 6%, aims to reduce small\ncommunities\u2019 dependence on high-interest loans, such as from loan sharks\nor illegal online loans.<\/p>\n<p>However, he reminded that KUR and informal loans target different\nsegments.<\/p>\n<p>Generally, very high interest rates are charged to groups that are\nuntouched by banking (unbankable), who lack business documents, credit\nhistory, or even bank accounts.<\/p>\n<p>Meanwhile, KUR still requires certain administrative eligibility,\nsuch as passing credit assessments and having business legality.<\/p>\n<p>In fact, the main barrier for micro, small, and medium enterprises\n(MSMEs) is usually initial access to financing.<\/p>\n<p>Therefore, he assesses that if the main goal of the policy is to\nreach groups that have been trapped in informal loans, a more effective\napproach is to expand access to ultra-micro financing with simpler\nrequirements.<\/p>\n<p>At the same time, strengthening financial literacy and integrating\ndata for small business actors is key to enabling them to enter the\nformal system.<\/p>\n<p>Yusuf also warned of debtor behaviour risks. \u201cWhen the public message\nthat emerges is that the state will continue to be present to lower the\ncredit burden, there is a possibility that some debtors become less\ndisciplined in payments. Such risks are not always large, but they need\nto be anticipated,\u201d he explained.<\/p>\n<p>President of the Republic of Indonesia Prabowo Subianto, in his\nspeech at the International Labour Day commemoration at the National\nMonument (Monas), Jakarta, on Friday, emphasised that the government\nwill soon disburse KUR with a maximum interest rate of 5% per year to\nimprove the welfare of small communities.<\/p>\n<p>\u201cI have already instructed the state-owned banks that shortly we will\ndisburse KUR at a maximum of 5% per year,\u201d said President Prabowo.<\/p>\n<p>The President explained that the policy is taken because small\ncommunities, including workers, farmers, and fishermen, have often been\nensnared by very high loan interest rates.<\/p>\n<p>According to him, people\u2019s income should not be exhausted just to pay\nburdensome loan interest.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/economist-kur-interest-rate-policy-needs-to-consider-targeting-accuracy-1777639911",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}