Jakarta (ANTARA News) - Member of Commission XI of the Indonesian House of Representatives (DPR RI), Nusron Wahid, has urged the Joko Widodo-Jusuf Kalla administration to expand access to credit guarantees for small and micro-business players beyond the People's Business Credit (KUR) program.
"Currently, the credit guarantee premium facility is only available to KUR recipients at state-owned banks. However, there are still around 70 million small and medium enterprise (SME) players who have not been reached by the KUR program," said Nusron during his presentation at the 2014 National Working Meeting (Rakernas) of Jaminan Kredit Indonesia (Jamkrindo) with the theme "The Urgency of the Role of Credit Guarantee Institutions for MSMEs and Cooperatives" in Jakarta on Tuesday evening.
Nusron, who is also the General Chairperson of GP Ansor, stated that the current credit guarantee program has proven successful in contributing to the multiplication of assets, turnover, and profits for credit guarantee recipients.
If all micro-business players, including those seeking credit from state-owned banks (BUMN) and regional development banks (BPD), receive guarantee facilities similar to the KUR program, Nusron is confident that the real sector in rural areas will thrive.
"Economic growth will also increase with quality and inclusive growth, and job creation will multiply," said the Golkar politician.
If this concept is implemented, Nusron added, it will also foster the growth of the guarantee business in Indonesia. Moreover, apart from Jamkrindo and Askrindo, many regional guarantee companies have begun to emerge in various provinces, such as East Java, Papua, and Bali.
"I believe that almost every province will see the emergence of new regional guarantee companies (jamkrida)," he said.
On this occasion, Nusron also expressed his belief that the KUR program is one of the good initiatives under President Susilo Bambang Yudhoyono's administration to lift people out of poverty. Therefore, he emphasized that the Jokowi-JK administration must continue this program.
"The KUR program, or whatever it may be called in the future, is the best solution ever implemented by the Susilo Bambang Yudhoyono administration and must be continued under any name," said Nusron.
The President Director of Jamkrindo, Diding S. Anwar, welcomed the idea of extending credit guarantee facilities to all SME players.
"We are ready to serve if all banks are allowed to access credit guarantee facilities. I think this is a good idea," said Diding S. Anwar.
(Source: Antaranews.com)