Changes in the People’s Business Credit (KUR) regulations have removed the collateral requirement for loans—raising the limit from Rp5 million to Rp20 million. However, it appears that this updated information did not reach all regions promptly, resulting in many banks still asking for collateral for KUR loans below Rp20 million.
Minister of Cooperatives and SMEs Syarifuddin Hasan has pledged to reprimand any banking officials who require collateral from KUR debtors. He stated that if it is proven that a bank is asking for collateral from KUR borrowers taking loans under Rp20 million, the bank’s directors will be immediately reprimanded.
"If in some regions there are still banks asking for collateral, it means they have not received complete information. I will call the bank directors and ask why their regional branches are still requiring collateral," he explained.
Syarif acknowledged that some banks are still requesting collateral due to delays in the dissemination of information to regional offices. "There will always be obstacles such as inadequate socialization and delayed information in some areas, so indeed a few banks are still asking for collateral. But improvements are on the way—we are making every effort to ensure this policy is properly communicated," he said after delivering a public lecture at the Temu BEM Nusantara event at Universitas Islam Bandung on Tuesday night (3/11).
He further clarified that KUR loans up to a maximum of Rp20 million do not require any collateral or additional guarantees. However, if the loan amount exceeds Rp20 million, collateral will be necessary. This point, he emphasized, needs to be clearly understood by the public.
For context, the maximum KUR loan is Rp500 million. “For KUR loans below Rp20 million, the only guarantee is the business itself. As long as the business is deemed sound, borrowers will be eligible for KUR,” added the Secretary of the Coordinating Secretariat of the pro-government parties.
The government continues to monitor both the MSMEs receiving financing and the banks disbursing KUR loans. Syarif noted that his ministry is actively accompanying and supervising the disbursement process to ensure that it reaches its intended targets. “Every government financing program must be accountable to the people. We provide continuous supervision and assistance because we do not want our achievements to stray from the intended goals,” he said.
On the same occasion, Wawan Hermawan, Head of the West Java Provincial Department of Cooperatives and SMEs, acknowledged that the collateral procedure remains a challenge. “The obstacles in KUR financing include the fact that many micro business groups are still unfamiliar with banking, and the collateral procedures have not been well socialized or information has been delayed,” he explained.
In Bandung, efforts continue to intensify socialization of the KUR program to ensure it is implemented in line with central government directives. “We are consistently encouraging MSMEs to tap into financing. In this context, the government’s KUR guarantee is intended to motivate banks to provide credit to debtors,” he added.
(source: rakyatmerdeka.co.id)