Adkasi: 6% KUR Interest Rate Shows State Support for MSMEs
Good production, sound financial management, and appropriate marketing strategies are the three keys for MSMEs to grow, scale up, and achieve greater profits.
Blora, Central Java (ANTARA) - The Association of Regional House of Representatives (Adkasi) believes that the government’s policy to maintain the People’s Business Credit (KUR) interest rate at 6 per cent per annum is a manifestation of the state’s presence in supporting the development of micro, small, and medium enterprises (MSMEs).
“This policy reflects the government’s commitment through the Ministry of MSMEs, alongside KUR-distributing banks, including the State-Owned Banks Association (Himbara) and other banking institutions, to strengthen the competitiveness of MSMEs,” said the Chairman of Adkasi, Siswanto, in Blora, Central Java, on Wednesday.
Furthermore, he noted that MSMEs are a business group vulnerable to economic dynamics and business competition. With the KUR interest rate at 6 per cent, the burden on MSME entrepreneurs becomes lighter, allowing them to focus more on business development and the hope of scaling up their operations.
Siswanto, who is also the Chairman of the Blora Chamber of Commerce and Industry (Kadin), stated that the success of the KUR Programme is not only determined by ease of access to financing but also requires continuous guidance from the central, provincial, and regency governments.
According to him, this guidance includes improving production quality, maintaining healthy business financial management, and strengthening marketing networks.
“Good production, good financial management, and appropriate marketing strategies are the three keys for MSMEs to be able to grow, scale up, and achieve larger profits,” he said.
He also expressed hope that all KUR-distributing banks would adhere to the regulations set by the government, ensuring that the 6 per cent KUR interest rate is truly applied through to the credit realisation process for the public.
“Additionally, the KUR distribution targets set by the government are expected to be realised optimally through synergy between the government, the Regional House of Representatives (DPRD), the banking sector, and other stakeholders,” he added.
He noted that such collaboration is essential to help MSME entrepreneurs meet various administrative requirements when applying for KUR, ensuring that access to financing becomes easier and more precisely targeted.
Siswante added that the KUR interest rate is far more competitive compared to commercial financing. Interest rates for business loans in commercial banks can reach over 10–12 per cent per annum, while in some non-banking financial institutions or cooperatives, the financing burden can range between 24–40 per cent per annum.
Therefore, he encouraged distributing banks to be more active in socialising the KUR Programme so that more MSME entrepreneurs can utilise this financing facility.
In Blora Regency, there are currently 13,977 MSME entrepreneurs operating in various sectors, ranging from culinary and online trade to batik production, rice milling, sound system services, and the furniture industry.