JAKARTA – The National Development Planning Agency (Bappenas) reported that 80% of People's Business Credit (KUR) has been distributed to businesses in the trade sector.
"Around 80% of KUR is allocated to the trade sector, while the remaining portion is directed toward agriculture and other industries," said Herry Suhermanto, Director of Cooperatives and SMEs at Bappenas, during the launch of risk management tools and training for microfinance institutions in collaboration with Standard Chartered at the Mandarin Hotel, Jakarta, on Tuesday (3/5/2011).
He further explained that microfinance distribution is managed within three clusters: the extremely poor (cushion), the National Program for Community Empowerment (PNPM), and KUR.
"The extremely poor are like powerless fish, and PNPM acts as a fishing rod to help them become self-sufficient," he added.
Additionally, he mentioned that Bappenas has facilitated microcredit distribution through approximately 19 banks, including state-owned and regional development banks. Since 2007, the total value of microfinance assistance disbursed to micro-enterprises has reached Rp 40 trillion. The guarantees for KUR distribution are provided by Askrindo and Jamkrindo.
(Source: Okezone)