Jakarta - The large amount of non-performing loans (NPL) in the 2014 People’s Business Credit (KUR) distribution program made the government cut the KUR distribution in 2015. Last year, the non-performing loan rate reached 4.2%.
Minister of Cooperatives and SMEs AAGN Puspayoga stated, target for KUR distribution this year is only Rp 20 trillion or reduced 30% from last year which reached Rp 30 trillion. "Yesterday's NPL was large. Now that's why it is focused (Rp 20 trillion)," said Puspayoga after a coordination meeting at the Office of the Coordinating Ministry for Economic Affairs, Jakarta, Tuesday (3/3/2015). To reduce those non-performing loans, they also changed the pattern of KUR distribution.
The pattern change is mainly related to the appointment of banks executing the KUR distribution. He said this year, they no longer involve Regional Development Banks (BPD) because from the collected data, non-performing loans for KUR often occurred in BPD.
"BPD is not involved anymore. Because its NPL has been high," he stressed.
At present, they have appointed 3 Executing Banks, namely Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Mandiri. With these three banks alone, he claimed it was enough to meet the KUR disbursement target of Rp 20 trillion. These three state-owned banks have a wide national reach so they are considered capable enough to handle the KUR program. "BRI has 10,000 branches in Indonesia. So I think this is enough," he said optimistically.
SOURCE: http://finance.detik.com