JAKARTA | PT Bank Rakyat Indonesia Tbk (BRI) is encouraging the distribution of KUR (People's Business Credit) not only for retail but also for the production sector. This aims to diversify businesses to promote more equitable economic growth.
"So we also want to encourage people to start taking KUR not only for trade but also for household livestock farming, such as cows, goats, or ducks. This way, the livestock production sector can become more productive," said President Director of Bank Rakyat Indonesia (BRI) Asmawi Syam at the Coordinating Ministry for Economic Affairs, Jakarta, Tuesday (12/7/2016).
"The same goes for the food sector. For example, how we encourage people to grow fruit. The hope is that fruit supply in Indonesia will not only come from large plantations but also from small-scale, yet widespread, household farming," he continued.
According to Asmawi, customers have so far preferred KUR for retail. Based on BRI records, the distribution of retail KUR had already reached 100% of the Rp 6 trillion fund target by March 2016.
Meanwhile, overall, BRI had distributed approximately 64% of the Rp 67 trillion KUR fund target by the end of June 2016.
"My target for BRI is Rp 67 trillion, and we have reached about 64% by the end of June. Meanwhile, for retail KUR, we have already reached 100% of the Rp 6 trillion target by March. We are evaluating why retail KUR runs out so quickly. This indicates that economic growth in the retail KUR segment is quite significant," he said.
Asmawi added that BRI would evaluate the target for KUR distribution over the next three months while preparing a scheme to attract people to take KUR for production activities.
"So we will evaluate it over the next three months and prepare for it. We have started thinking about what schemes should be provided to generate interest. If it is for production, maybe there will be some kind of incentive. Because we need production. We look at the people. For example, if someone previously only borrowed Rp 25 million in KUR or Rp 100 million in retail KUR, if they can diversify their business, they could potentially increase it by two times or 1.5 times," he concluded. (Source: www.detik.com)