TARAKAN – During President Joko Widodo's administration, the government has cut the interest rate on People's Business Credit (KUR) twice. In July 2015, the KUR interest rate was reduced by 10 percent from the previous 22 percent to 12 percent. At the beginning of 2016, the government further lowered the KUR interest rate to 9 percent.
The low KUR interest rate certainly provides convenience for micro, small, and medium enterprises (MSMEs) in developing their businesses. Specifically for small and micro enterprises (SMEs), the government has even eliminated collateral requirements for loans under Rp25 million.
However, this credit facility cannot be enjoyed by people in border areas, including those residing in Tarakan. Based on information gathered by Okezone, residents in the Indonesia-Malaysia border area are not even aware of the KUR program from the Ministry of Cooperatives and Small and Medium Enterprises (MSMEs).
"I have not heard about this program. There has been no socialization reaching here," said Sri Hastuti, a food business owner, to Okezone in Tarakan recently.
Currently, Sri has a loan with a private bank in Tarakan. However, she complains about the high-interest rates imposed on MSMEs like hers.
"I already have a loan with a private bank. The interest rate is quite high," she lamented.
Therefore, Sri hopes that information regarding the KUR program can be widely disseminated to all levels of society. People in Indonesia's outermost islands, she emphasized, desperately need financial assistance to develop their businesses, as this sector serves as their primary source of livelihood in border areas.
"If KUR is available here, I would be interested. But I haven't heard any information about it," she concluded.
For reference, Tarakan is Indonesia’s gateway located in the northern part of the country. Through Juwata International Airport, many tourists from Malaysia choose to vacation in this area.
This region is also known for its seafood products, such as shrimp, milkfish, and crabs. Local communities rely on these marine resources as a key business sector. Therefore, government support, such as KUR loans, is essential to help MSMEs in this area grow and thrive. (Source: okezone.com)