Indonesia seeks faster KUR lending to production sectors
Production-sector lending in Java, Bali and Nusa Tenggara stands at around 61 per cent, below the national target of 65 per cent, the deputy MSMEs minister said.
Indonesia’s Ministry of Micro, Small, and Medium Enterprises is seeking quicker disbursement of subsidised People’s Business Credit (KUR) across Java, Bali and Nusa Tenggara, with a focus on financing production sectors.
Speaking in Surabaya, Deputy Minister Helvi Yuni Moraza said KUR lending to production sectors had reached the national target of 65 per cent. The corresponding figure for the three regions was around 61 per cent.
Helvi said the ministry and other stakeholders had agreed to expand production-sector financing during the remainder of the year, in line with President Prabowo Subianto’s directions on downstream processing. He called for stronger links between small businesses and industrial companies that can buy their output and act as production partners.
The government is also encouraging efforts to identify industrial requirements by regional cluster and local potential, he said. This is intended to improve the targeting of KUR financing and connect MSMEs to supply chains in East Java.
Nationally, KUR disbursements had reached 91 per cent of the Rp290 trillion target and covered 4 million borrowers, according to Helvi. East Java led the country with lending of between Rp48 trillion and Rp49 trillion, which he attributed to support and mentoring from local governments, banks and credit distributors.
