Bank Internasional Indonesia (BII) economist Juniman believes that the effectiveness of People's Business Credit (KUR) distribution depends on the mentoring provided by the lending banks to micro, small, and medium enterprises (MSMEs).
"Lending banks must continuously monitor the performance of KUR. Once KUR is granted, the lending banks must act as mentors in their business journey. This is to ensure that they can grow and that their businesses do not close, leading to non-performing loans," said Juniman on Friday (29/1).
According to him, based on experiences from previous years, non-performing loans in KUR have occurred due to a lack of mentoring from lending banks for small industries receiving KUR. Most of these recipients are beginner entrepreneurs who lack knowledge in business.
"These customers need training. Since these are small industries, they need either industrial or management training to help their businesses grow and make KUR distribution more effective," he said.
However, he added, lending banks cannot do this alone. They must collaborate with the Ministry of Cooperatives and MSMEs to conduct training and industry development for MSMEs.
"Banks cannot do it alone because it incurs costs for them. Therefore, the government must also prepare programs, provide experts, and prioritize which industries should be developed for KUR distribution," he stated.
So far, he said, the ministry has already implemented programs for KUR recipients. However, he hopes these programs will be intensified, and the distribution and training for MSME industries will be expanded to previously unreached regions.
"It needs to be intensified in other regions. So far, efforts have been concentrated around major cities, both in districts and municipalities. However, many areas outside these regions also need guidance and KUR," he said. (Source: republika.co.id)