JAKARTA: The gross non-performing loans (NPL) for People's Business Credit (KUR) have now decreased to an average of 5.6% from previous levels.
"NPL gross in the KUR sectors is very low, averaging 5.6%," explained Minister of Cooperatives and Small and Medium Enterprises Syarifuddin Hasan at the Coordinating Ministry's office in Jakarta today.
However, Syarifuddin emphasized that a high NPL should not be used as the sole measure of the failure or success of the KUR program. The KUR program is a form of the government's commitment to support people's enterprises to boost the national economy and improve their standard of living.
"NPL should be considered a secondary, even tertiary priority. The main focus is on ensuring the prosperity of the people," he said.
Meanwhile, Bank Indonesia Deputy Governor Budi Rohadi noted that in May 2010, the KUR NPL was recorded at 6.03%, and it has now decreased to 4.92%.
According to him, this reduction is due to the expansion of the KUR program itself, along with increasing public demand and the easier claims process from Jamkrindo and Askrindo.
"KUR NPL has significantly decreased. Typically, gross NPL is capped at 5%, so this level is still below our target," explained Budi.
(source: bisnis.com)