Jakarta – The government, along with six participating banks in the People's Business Credit (KUR) program, has agreed to include Indonesian Migrant Workers (TKI) in the KUR program. This initiative aims to protect TKIs from falling victim to loan sharks.
Sofyan Basir, President Director of PT Bank Rakyat Indonesia Tbk (BRI), stated that migrant workers often rely on loan sharks to finance their journeys abroad.
"Previously, TKIs were often funded by loan sharks. To minimize this risk, the government is stepping in. At the start of their journey abroad, it can be financially burdensome for things like passports and visas, which is why they end up borrowing from loan sharks," he said at the Coordinating Ministry for Economic Affairs, Jalan Lapangan Banteng, Jakarta, on Thursday (September 16, 2010).
The KUR scheme for TKIs, as explained by Sofyan, offers a maximum loan ceiling of IDR 50 million for unskilled workers and IDR 60 million for skilled workers, such as nurses and technical workers.
"This depends on the length of training and the salary received. The loan repayment period ranges from 12 to 36 months and will be directly deducted from their salaries by companies abroad through PJTKI (Indonesian Migrant Worker Placement Companies), which will remit the payments directly to the bank," Sofyan explained.
At the same event, Coordinating Minister for Economic Affairs Hatta Rajasa said that the KUR program for TKIs is provided by the government to facilitate their employment abroad. In this scheme, the government guarantees 80% of the KUR funds provided by participating banks.
"This guarantee for TKIs is crucial as it not only facilitates their work abroad but also allows us to monitor and measure it more effectively, thereby reducing their financial burden," Hatta said.
On the same day, the government and KUR-participating banks signed a Memorandum of Understanding (MoU) to increase the unsecured KUR ceiling from the previous maximum of IDR 5 million to IDR 20 million.
Additionally, the government raised the guarantee for KUR from 70% to 80% for entrepreneurs in agriculture, forestry, marine, and fisheries sectors.
The signing ceremony was attended by the Minister of Finance, the Minister of Cooperatives and SMEs, the Minister of Agriculture, the Minister of Marine Affairs and Fisheries, the Minister of Industry, the Minister of Forestry, Senior Deputy Governor of Bank Indonesia Budi Rochadi, Perum Jamkrindo, PT Askrindo, PT Bank Rakyat Indonesia Tbk (BRI), PT Bank Mandiri Tbk, PT Bank Negara Indonesia Tbk (BNI), PT Bank Tabungan Negara Tbk (BTN), PT Bank Bukopin Tbk, and PT Bank Syariah Mandiri.
Source: detikfinance.com