Jakarta - Vice President Jusuf Kalla (JK) stated that the government will reduce the interest rate of the Kredit Usaha Rakyat (KUR) to 7 percent in 2017. This aims to encourage Small, Micro, and Medium Enterprises (UMKM).
JK mentioned that the government is currently focusing on promoting UMKM for economic equality. One form of support for UMKM is by reducing the KUR interest rate from 9 percent to 7 percent.
"Now we will reduce it to 9 percent, and we will try to lower it to 7 percent," said Kalla, during the closing of the Islamic Economic Congress of the Indonesian Ulema Council (MUI) at the Grand Sahid Hotel, Jakarta, Monday (April 24, 2017).
JK explained that the government, along with stakeholders involved in lending, is currently discussing the reduction of KUR interest rates. He targets the reduction to be realized in the coming months.
"Yes, we are holding meetings again. The bottom line is, in a few months, it will drop. God willing, this year," said JK.
On this occasion, JK expressed regret over the increase in KUR interest rates during the previous administration.
"The government made a big mistake five years ago. When I was Vice President during my first term, KUR was 10-11 percent. Suddenly, in the second cabinet of SBY, the policy increased to 23 percent," said JK. (Source: www.liputan6.com)