Micro, Small, and Medium Enterprises (UMKM) play a significant role in Indonesia's economy. Data from the Ministry of Cooperatives and SMEs in 2018 recorded that UMKM contributed 61 percent to the Gross Domestic Product (GDP) from a total of 64.18 million UMKM. UMKM also contributed 14.3 percent of Indonesia's exports to various countries.
Given the strategic role of UMKM in the national economy, the government has continuously developed UMKM. One of the government’s programs to develop UMKM is to increase their access to formal financial services in the form of Kredit Usaha Rakyat (KUR).
As a credit guarantee company that aims to improve financial accessibility for UMKM and cooperatives, PT Jamkrindo (Persero) is committed to supporting the growth of KUR. One of the ways it does this is by actively promoting the KUR program to various regions. On Friday, March 13, 2020, Jamkrindo participated in the KUR socialization event in the Kudus area along with the Committee for Policy on Financing for UMKM.
The Director of Business Guarantee at Jamkrindo, Amin Mas'udi, stated that the policy of reducing KUR interest rates and increasing the KUR plafond is a momentum for stakeholders to conduct massive socialization in the regions. Jamkrindo’s participation in this event demonstrates the company's support for enhancing the capabilities of national UMKM.
“The government has lowered the interest rate for Kredit Usaha Rakyat (KUR) to 6 percent per year, from the previous 7 percent. This is great news that needs to be widely socialized to UMKM actors,” said Amin.
He further explained that Jamkrindo’s commitment to the KUR program has been demonstrated through continuous credit guarantee for KUR. In 2017, Jamkrindo guaranteed KUR credits amounting to IDR 50.47 trillion, followed by IDR 50.53 trillion in 2018, and IDR 59.01 trillion in 2019, with a total of 6 million UMKM guaranteed. “This year, we hope to guarantee around IDR 95 trillion,” Amin added.
As a trusted guarantee company, Jamkrindo has received recognition as the best KUR guarantee company at the KUR Award from the Coordinating Ministry for Economic Affairs. This is the second time Jamkrindo has received this award after winning the same recognition in 2018. "We remain committed to supporting the advancement of UMKM in the country. We are very enthusiastic to participate in the KUR program," Amin concluded.