Jakarta | The government has set the interest rate for People's Business Credit (KUR) at 9% starting January 4, 2016, down from the previous 12%. This policy aims to encourage the development of the Micro, Small, and Medium Enterprises (MSMEs) sector.
KUR consists of Micro KUR, Retail KUR, and KUR for Indonesian Migrant Workers (KUR TKI). The amount of KUR disbursed varies depending on the type of KUR and the distributing bank.
For example, BRI. BRI's Micro KUR is a Working Capital Credit and/or Investment Credit with a plafond of up to Rp 25 million per debtor.
Meanwhile, BRI's Retail KUR is a Working Capital Credit and/or Investment Credit for debtors with productive and viable businesses, with a plafond of more than Rp 25 million up to Rp 500 million per debtor.
BRI's KUR TKI is provided to finance the departure of prospective Indonesian Migrant Workers (TKI) to their destination countries with a plafond of up to Rp 25 million.
So, what are the requirements, and how can one obtain KUR?
The following information was obtained by detikFinance on Wednesday (6/1/2016) from the websites of BRI and Bank Mandiri.
Prospective Debtor Requirements:
BRI Micro KUR
- Individuals engaged in productive and viable businesses
- Have been actively running the business for at least six months
- Not currently receiving credit from banks, except for consumer credit such as mortgage loans (KPR), vehicle loans (KKB), and credit cards
- Administrative requirements: Identification (KTP), Family Card (KK), and business permit
BRI Retail KUR
- Have a productive and viable business
- Not currently receiving credit from banks, except for consumer credit such as KPR, KKB, and credit cards
- Have been actively running the business for at least six months
- Possess a Micro and Small Business License (IUMK) or an equivalent business permit
BRI KUR TKI
- Individual prospective TKI who will work abroad
- Administrative requirements:
- Identification (KTP) and Family Card (KK)
- Employment contract with the service user
- Placement agreement
- Passport
- Visa
- Other requirements according to regulations
Credit Terms and Conditions:
BRI Micro KUR
- Maximum credit amount: Rp 25 million per debtor
- Credit types:
- Working Capital Credit (KMK) with a maximum term of three years
- Investment Credit (KI) with a maximum term of five years
- Interest rate: 12% effective per year or equivalent to 0.55% flat per month
- No provision or administration fees
BRI Retail KUR
- Credit amount: More than Rp 25 million up to Rp 500 million
- Credit types:
- Working Capital Credit (KMK) with a maximum term of four years
- Investment Credit (KI) with a maximum term of five years
- Interest rate: 12% effective per year
- No provision or administration fees
- Collateral as per bank regulations
BRI KUR TKI
- Maximum credit amount: Rp 25 million or according to the Cost Structure set by the government
- Interest rate: 12% effective per year or equivalent to 0.55% flat per month
- No provision or administration fees
- Maximum term: three years or according to the employment contract
- Destination countries: Singapore, Hong Kong, Taiwan, Brunei, Japan, South Korea, and Malaysia
BANK MANDIRI
The credit is provided for financing productive businesses in the micro, small, medium, and cooperative segments that are viable but not yet bankable for working capital and/or investment credit through direct or indirect financing (linkage) guaranteed by a Credit Guarantee Institution, with the following criteria:
- Not currently receiving credit from banks or government credit programs
- MSMEs receiving consumer credit from banks (such as mortgage loans, vehicle loans, credit cards, and other consumer loans) are allowed to receive KUR
Credit Limit:
- Direct KUR (individual): Maximum Rp 500 million
- Indirect KUR:
- Executing Scheme: Maximum Rp 2 billion per linkage institution and maximum Rp 100 million per end user
- Channeling Scheme: According to the end-user nomination list with a credit limit of up to Rp 500 million per end user
Credit Types: Investment and/or working capital
Credit Term:
- KMK: Maximum three years, extendable to six years
- KI: Maximum five years, extendable to ten years
- KI for hard crop plantations: Maximum 13 years, non-extendable
Requirements:
- Legal documents of the applicant, such as KTP, Family Card
- Business legality documents, such as NPWP, SIUP, and SK
(Source: Detikfinance)