Jakarta — The ratio of non-performing loans (NPL) for the Kredit Usaha Rakyat (KUR) program is not commensurate with the fee—or yield—set at 1.5 percent for the guarantor companies. As of December 2009, the KUR NPL had climbed to 4.92 percent.
Parikesit Suprapto, Deputy for Banking and Financial Services at the Ministry of State-Owned Enterprises, said his ministry is calling on the government to address the issue. “There is a deficit or loss margin between the fee and the NPL rate for the guarantor companies. This shortfall could undermine the continuity of the KUR program,” he explained.
He warned that without additional funding from the state budget (APBN), the guarantor companies—currently Askrindo and Jamkrindo—could face significant losses. Suprapto suggested alternative measures to mitigate these risks, such as lowering the NPL rate for KUR or providing further capital injections into the guarantor firms.
Previously, the government had infused IDR 1.45 trillion into the two state-owned companies when the KUR program was launched in 2007, and later injected an extra IDR 500 billion.