KUR Credit Interest Cut To Seven Percent in 2018

Bekasi, W Java, (Antara Sumbar) - President Joko Widodo (Jokowi) has said that the government would lower the interest rate of the Smallholder's Micro Business Credit (KUR) to seven percent beginning in 2018.

"The economic affairs minister reiterated that the KUR credit interest will be lowered to seven percent next year," Jokowi stated, while handing a number of decrees on state forest utilization in Muara Gembong, Bekasi, West Java province, on Wednesday.

Jokowi mentioned that the KUR interest rate had reached 22 percent per year several years ago. "Last year, the KUR interest rate was reduced to nine percent per year," he noted.

According to Jokowi, KUR interest rate decline is part of the government's efforts to improve the economy, especially among small and medium enterprise players.

On the occasion, the president called on the recipients of the decrees to maximize the utilization of state forests to make it more accessible to farmers and fish breeders.

"The forest areas must be given to them, so that they would be utilized immediately for productive economic activities; for instance, to develop shrimp ponds for quick harvest of shrimps," Jokowi stressed.

According to Jokowi, in addition to providing capital assistance through KUR, farmers in Muara Gembong who utilize social forest land areas will also receive marketing assistance for production.

"In addition, for capital assistance, Bank Mandiri will provide KUR credit. The proceeds will be bought by state-owned Perindo or would be bought by a private buyer, if allowed. If there are no buyers, then it would be bought by state-owned companies. Therefore, it is clear that there would be assistance," he pointed out.

He mentioned that the model of social forest utilization will not only be developed in Karawang and Bekasi but also throughout Indonesian provinces.

"In the next 3 to 4 months, I will check the shrimp production. If no progress has been made and the land remains idle, then the license would be revoked," Jokowi reiterated.

He hoped that the distribution of forest utilization permits for farmers or cultured fish farmers could improve their well-being.

"We do not want them to be only holding the license of the land and failing to use it for productive purposes," he remarked. (*)

Editor: Vicha Faradika