Friday, July 30, 2010
Government to Accelerate Absorption of Smallholder Credits
Source: ANTARA News


Jakarta - The government will speed up the absorption of smallholder business credits (KUR) in the second semester so that it would surpass the Rp13.15 trillion target by the end of the year, Hatta Rajasa said.

"We are optimistic the floor target of Rp13.155 trillion will be exceeded," the coordinating minister for economic affairs said after a cabinet meeting here on Thursday.

He said from March to June 2010 KUR distribution reached Rp5.3 trillion which was higher than it was in the same period last year which was only around Rp4 trillion.

Hatta was optimistic KUR distribution in 2010 would surpass that of the previous year if it was accompanied by various acceleration efforts.

The government has already prepared plans to accelerate KUR absorption such as increasing maximum credit limits for small and medium businesses.

He said small and medium businesses could now apply for a credit of between Rp5 and Rp20 million without collaterals while retail businessmen could get between Rp20 and Rp500 million.

Hatta said the target of KUR priority was the upstream sector of various small and medium businesses particularly agriculture, fisheries and marine resource.

Besides increasing ceilings the government would also increase data collection of and information campaign among small and medium businesses in every subdistrict to improve their knowledge about the credit scheme. "That way it is expected absorption will be accelerated," he said.

Hatta hoped KUR absorption would keep increasing so that the target of Rp100 trillion KUR distribution until 2014 would be reached.

The cabinet meeting that day also discussed investment prospects especially incentives for investors.

Hatta said the government would provide incentives as a way to boost investment but their extension would depend upon situation and conditions relating to investors in each sector.

Besides conducting a case study the government would also study the legal cases relating to investments to ease investment access to the country such as regarding the bill on land procurement for public interest.