The Indonesian government continues to demonstrate its commitment to advancing the tourism sector through the distribution of People’s Business Credit (KUR). This year, a total of IDR 279 billion in Tourism KUR will be disbursed to 6,911 debtors in Banyuwangi, East Java for 2019.
"With a low interest rate of 7%, KUR can serve as an alternative financing scheme for MSME players in the tourism sector," said Deputy for Macroeconomic and Financial Coordination at the Coordinating Ministry for Economic Affairs, Iskandar Simorangkir, in Banyuwangi on Friday, July 19, 2019.
As the state-owned credit guarantee company, Perum Jamkrindo played a key role in the event. Additionally, Perum Jamkrindo distributed Corporate Social Responsibility (CSR) assistance under the Partnership and Community Development Program (PKBL) for the East Java community.
The assistance included: Renovation of homestay toilets at an Islamic boarding school, Financial aid for Raudlatus Salam Islamic Boarding School, totaling IDR 31 million.
The aid distribution took place during the Tourism KUR disbursement event and financial inclusion implementation in Banyuwangi, East Java.
The event was attended by: Amin Mas'udi, Director of Guarantee Business at Perum Jamkrindo, Loesdarwanto, Head of Perum Jamkrindo Regional Office VI Surabaya, Rizky Tri Yugo, Banyuwangi Branch Manager of Perum Jamkrindo, Employees of Perum Jamkrindo Banyuwangi Branch.
Since its launch in September 2018, Tourism KUR has reached IDR 21.7 trillion, benefiting 1.1 million debtors. This represents 5.3% of the total KUR distribution.
In Banyuwangi alone, Tourism KUR disbursement has reached IDR 657 billion, benefiting 26,000 debtors.
"Banyuwangi, known as The Sunrise of Java, has immense tourism potential. It is also one of the regions with the highest KUR disbursement for tourism," Iskandar explained.
From 2015 to June 2019, the total accumulated KUR disbursement amounted to IDR 408.5 trillion, benefiting 16.57 million debtors, while maintaining a Non-Performing Loan (NPL) rate of 1.39%.
For 2019 alone, as of June 30, KUR disbursement reached IDR 75.1 trillion (53.7% of the IDR 140 trillion target), benefiting 2.7 million debtors.
East Java ranked as the second-highest province in KUR distribution, with a total accumulation of IDR 67.5 trillion, benefiting 3.2 million debtors.
In addition to supporting tourism through KUR, the government is also promoting economic inclusion through the Santripreneur Go-Online program.
"Collaboration between the government and private sector is essential in empowering MSMEs and businesses within Islamic boarding schools," said Susiwijono, Secretary of the Coordinating Ministry for Economic Affairs, at the Banyuwangi Regency Hall.
The Santripreneur Go-Online program, in partnership with Shopee Indonesia, aims to improve digital literacy in marketing and product development for santri (Islamic boarding school students) and local communities.
The first batch of training, held on July 18, 2019, involved 50 participants from Nurul Quran Islamic Boarding School, Banyuwangi, including: 25 alumni, students, teachers, and school community members, 15 community members already engaged in online sales, 10 representatives from nearby Islamic schools (madrasah diniyah).
The training covered: Beginner Class Introduction to online selling, Understanding consumer psychology, Sales strategies and product photography. and Intermediate Class Utilizing Shopee’s features, Becoming a best seller, Using Shopee Pay, Writing compelling product descriptions.
The training sessions lasted one full day, combining lectures, hands-on product photography practice, and interactive activities.
Susiwijono emphasized that the program aims to enhance digital entrepreneurship skills among santri and the local community.
"We hope that after this training, participants will not only improve their product sales but also enhance their overall entrepreneurial competence. This way, santri can become religious scholars, teachers, and also successful digital entrepreneurs," she added.
The government fully supports developing the digital economy ecosystem as part of a strategic move to strengthen entrepreneurship in the era of digital disruption and the Fourth Industrial Revolution (Industry 4.0).
Banyuwangi Regent Azwar Anas highlighted the importance of central-regional collaboration in developing MSMEs and the tourism sector.
"To boost regional economic capacity, digital marketplaces must be connected to MSMEs. The visit from the Coordinating Ministry for Economic Affairs, along with various government programs and policies, motivates us to continue innovating in MSME and tourism development," he stated.
The Leaders Offsite Meeting of the Coordinating Ministry for Economic Affairs was attended by: Deputy for Creative Economy, Entrepreneurship, and MSME Competitiveness at the Coordinating Ministry for Economic Affairs, Banyuwangi Regent, Nurul Quran Islamic Boarding School Leaders, Directors of KUR disbursing banks and guarantee institutions, Other relevant stakeholders.