MSMEs Ministry Seeks to Accelerate KUR Microcredit Distribution
Deputy Minister of MSMEs Helvi Yuni Moraza stated that national KUR distribution in production sectors has reached the target of 65 percent, whereas distribution in Java, Bali, and Nusa Tenggara stands at around 61 percent.
“We want to ensure that the target for KUR distribution, particularly in the production sectors across these regions, can be met through faster disbursement and the strengthening of an industrial ecosystem that involves MSMEs,” Helvi said in Surabaya, East Java, on Friday.
He stated that the ministry and key stakeholders have agreed to utilize the remainder of the year to accelerate progress toward the target by expanding financing for production sectors, in line with President Prabowo Subianto’s directives on downstream processing.
He emphasized that all stakeholders must help strengthen the industrial supply chain to connect MSMEs with industrial players, who serve as both off-takers and partners in the production ecosystem.
Helvi stressed that the government is encouraging the mapping of industrial needs based on regional clusters and local potential to ensure KUR financing is better targeted and helps MSMEs integrate into the supply chain in East Java.
According to him, national KUR disbursement has reached 91 percent of its Rp290 trillion (around US$15.9 billion) target, reaching 4 million borrowers.
He added that East Java recorded the highest KUR distribution nationwide, with credit totaling between Rp48 trillion and Rp49 trillion.
This achievement, he said, was supported by the active role of local governments, banks, and channelers in providing guidance and mentoring to business players across districts and cities.
“We hope that collaboration among the central government, local governments, banking institutions, and all stakeholders can bolster the industrial ecosystem and increase MSME involvement in supply chains to create jobs and reduce poverty,” the deputy minister remarked.
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Translator: Astrid F, Fahmi A, Raka Adji