Jakarta | In the third phase of the economic policy package, the government has relaxed the requirements for recipients of the People's Business Credit (KUR). The goal is to ensure that the allocated Rp 30 trillion in the 2015 Revised State Budget (APBN) can be fully realized by the end of the year.
Coordinating Minister for Economic Affairs Darmin Nasution stated that the government had previously increased the budget for interest subsidies, reducing the loan interest rate from 22% to 12%. However, due to complex requirements, only Rp 19.2 trillion had been disbursed.
"This is an expansion effort to encourage new entrepreneurs to access KUR. To improve entrepreneurs' access to banking products through the KUR program, the government has lowered interest rates from 22% to 12%," he said at the State Palace, Jakarta, on Wednesday (10/7/2015).
Darmin explained that, under previous regulations, the wives of salaried employees were not eligible for KUR, even if the funds were intended to establish a salon, shop, or similar business. This was because such loans were categorized as consumptive rather than productive credit.
"For example, families with a fixed income, such as employees, were previously ineligible for KUR because of concerns about consumptive use. Since they have a steady income, they were not considered for KUR. But in reality, many employees' wives run salons, coffee shops, and other businesses," Darmin explained.
Nevertheless, the government will maintain prudence to minimize the risk of non-performing loans. Essentially, as long as the funds are used for productive activities, they qualify for KUR. The loan repayment period will also be extended.
"As long as the funds are used for productive activities, the KUR provided will be categorized as productive, not consumptive," he emphasized. Source: Detik Finance