Jakarta - Bank Indonesia (BI) recorded that the non-performing loan (NPL) ratio for People's Business Credit (KUR) continues to show a decline. As of January 2010, the KUR NPL was recorded at 6.03%, and by July 2010, it had decreased to 4.92%.
This was conveyed by Deputy Governor of Bank Indonesia, S Budi Rochadi, when met during the signing of a memorandum of understanding (MoU) for KUR at the Office of the Minister of Economy, Jalan Lapangan Banteng, Thursday (16/9/2010).
"Based on the available data, the latest figure has decreased; as of January 2010, it was 6.03%, and now, as of July 2010, it is recorded at 4.92%. These are all gross NPL figures," said Budi.
He explained that the banking credit NPL is set at around 5% for net NPL, so the KUR NPL is still below the range set by BI.
The decline in KUR NPL, Budi continued, is due to significant credit expansion accompanied by good management.
"The implementation of risk management in banks has increasingly improved, so NPL can be controlled. Additionally, the process of submitting claims to Askrindo and Jamkrindo has become easier," said Budi.
In the same location, the Minister of State for Small and Medium Enterprises and Cooperatives, Syarif Hasan, stated that KUR NPL is not a priority, meaning that KUR is provided to promote welfare. "So, NPL is not a priority because KUR is used to optimize the welfare of the people," he explained.
According to him, the people have shown high loyalty as recipients of KUR, which is why NPL can continue to be controlled. "Or the trend of rising NPL can be suppressed," he said.
On the same occasion, the President Director of Bank Rakyat Indonesia Tbk (BRI), Sofyan Basir, explained that KUR customers are very cooperative because the scheme provided is also easy.
"They (KUR customers) only need to pledge their main business assets because the bank does not require collateral such as motorcycles, land, and so on. That is why they are very loyal and cooperative," he said.
By increasing the loan scheme, Sofyan hopes that KUR will continue to grow, thereby keeping the small-scale economy moving.
Source: detikfinance.com