A total of 13 Regional Development Banks (BPD) have been mandated to disburse People’s Business Credit (KUR) by the end of this year, with an upper target of Rp2.2 trillion and a lower target of Rp2 trillion.
According to Winny Erwindia, Chairman of the Association of Regional Banks (Asbanda), the Asbanda member banks have, since the beginning of this year, absorbed KUR funds amounting to Rp792 billion with 11,154 debtors. “On the ground, we are always striving to maximize KUR absorption,” he said.
Winny cited Bank Jatim as an example. Although Bank Jatim offers 40 different credit schemes, it pays special attention to KUR. The bank has even reduced its commercial interest rate on KUR loans to 12 percent per annum from the maximum of 14 percent per annum. “These kinds of initiatives are among the measures we’re taking to maximize KUR absorption,” he noted.
Looking at the target for the 13 BPD, the lower target for KUR disbursement until 2010 is Rp2 trillion, which translates into specific quotas for each bank. For example:
- Bank Jatim is allocated Rp1 trillion
- Bank Jabar Banten: Rp460 billion
- Bank Jateng: Rp250 billion
- Bank DKI: Rp50 billion
- Bank DIY: Rp25 billion
- Bank NTB: Rp25 billion
- Bank Kalbar: Rp50 billion
- Bank Kalsel: Rp25 billion
- Bank Kalteng: Rp25 billion
- Bank Nagari: Rp25 billion
- Bank Maluku: Rp15 billion
- Bank Sulut: Rp25 billion
- Bank Papua: Rp25 billion
To further optimize KUR disbursement, the government has pushed for the signing of the third KUR addendum at the Ministry of Cooperatives on Thursday (23/9). This addendum, which includes several improvements to the KUR scheme, was signed by the directors of 13 BPDs, namely Bank DKI, Bank Jabar-Banten, Bank Jateng, Bank Jatim, BPD Yogyakarta, Bank Nagari, Bank NTB, Bank Sulut, Bank Kalbar, Bank Kalsel, Bank Kalteng, Bank Maluku, and Bank Papua.
Key relaxations in the revised KUR scheme include:
- Increasing the micro KUR ceiling from Rp5 million to Rp20 million
- Raising the credit guarantee from 70 percent to 80 percent
- Extending KUR facilities to Indonesian migrant workers (TKI)
- Increasing the KUR ceiling for the linkage program from Rp1 billion to Rp2 billion
- Providing a 13-year credit term for investment financing in the plantation sector
Additionally, Bank Indonesia Deputy Governor Budi Rochadi noted that data from Bank Indonesia shows a continued decline in the non-performing loan (NPL) ratio for KUR. In May 2010, the NPL was 6.03 percent, but it has since dropped to 4.92 percent—still below the Bank Indonesia maximum threshold of 5 percent.
(source: koran-jakarta.com)