Perum Jamkrindo received recognition as the Best People's Business Credit (KUR) Guarantee Company in the KUR Award event held by the Coordinating Ministry for Economic Affairs.
The award was presented directly by the Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki, witnessed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto, to the President Director of Perum Jamkrindo, Randi Anto, at the office of the Coordinating Ministry for Economic Affairs on Thursday, December 19th.
"This award serves as an encouragement for Perum Jamkrindo to continue innovating and providing excellent services for the benefit of SMEs," said Randi Anto in his speech.
In his keynote speech at the KUR Award 2019 ceremony, Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the policies to develop SMEs not only aim to increase economic growth but also serve as a step towards equitable economic distribution for all Indonesians.
Airlangga mentioned that the awarding ceremony aims to motivate local governments, guarantors, and KUR program supporters to participate in assisting the government in distributing KUR.
The KUR Award is an award for the best local governments, guarantors, and KUR program supporters.
The assessment process for this award for KUR stakeholders was carried out by an evaluation team and a technical team chaired by the Deputy for Macroeconomic and Financial Coordination of the Coordinating Ministry for Economic Affairs, Iskandar Simorangkir, with members representing the Ministry of Finance, Ministry of Cooperatives and SMEs, Ministry of Home Affairs, Financial Services Authority, Bank Indonesia, the Indonesian Institute of Sciences, and the University of Indonesia.
The assessment criteria carried out by the evaluation team and technical team included fulfilling tasks related to the KUR program, supporting KUR distribution in the production sector, with winners determined through qualitative assessment based on documents, presentations, and interviews.
As of Q4/2019, Perum Jamkrindo’s KUR guarantees amounted to IDR 57 trillion, benefiting over 2 million SMEs.
The KUR program has undergone several changes in both schemes and regulations. One recent change is the reduction of interest rates, from 7% in 2019 to 6% in 2020.
This interest rate reduction policy is followed by a target to increase KUR distribution volume by 36% compared to 2019, reaching IDR 190 trillion next year. Additionally, the government is committed to continuously improving KUR distribution over the next five years, with a target of IDR 325 trillion by 2024.
This is also supported by an increase in the maximum KUR microcredit ceiling from IDR 25 million to IDR 50 million per debtor. The total cumulative KUR Micro ceiling for the trade sector has also increased from IDR 100 million to IDR 200 million. All these changes will take effect from January 1, 2020.
For the performance of the KUR program, from 2015 to October 2019, KUR has been distributed to 18.3 million debtors, totaling IDR 460.62 trillion. Specifically, for 2019, KUR distribution reached 90.9% of the target, or IDR 127.3 trillion out of IDR 140 trillion.
This successful KUR distribution is also aligned with maintaining the quality of KUR, reflected in the non-performing loan (NPL) ratio, which stood at 1.26% in 2019.
With these various pro-people KUR policy changes, Minister Airlangga expects that more SMEs will gain access to financing from formal financial institutions easily, affordably, and quickly.
The Law No. 20 of 2008 on Micro, Small, and Medium Enterprises (UMKM), Articles 7 and 8, mandates that the central and regional governments are expected to foster a conducive business climate by formulating supportive policies.
From a financing perspective, the government provides financing facilities for micro-enterprises that are unbankable, as well as medium-sized businesses that are bankable. Various types of financing include the Partnership and Community Development Program (PKBL) from SOEs, Mekaar financing from PT PNM, Revolving Funds from LPDB, Micro Waqf Bank (BWF), ultra-micro financing from the Ministry of Finance, and People’s Business Credit (KUR) with low interest rates.
Also attending the event were the Minister of Cooperatives and SMEs, Teten Masduki, Deputy for Macroeconomic and Financial Coordination of the Coordinating Ministry for Economic Affairs, Iskandar Simorangkir, Deputy Governor of Central Java, Taj Yasin Maimoen, directors from KUR distribution banks and guarantors, as well as representatives from Provincial and Regency/Municipality Governments who were winners.