President Joko Widodo handed over the People's Business Credit (KUR) assistance to approximately 600 farming and livestock business actors. The handover held at the Miftahul Huda Islamic Boarding School, Tasikmalaya, was part of the President's working visit to West Java on Wednesday, February 27, 2019.
The current government wants to encourage KUR distribution to businessmen in the production sector. This is so that the productivity of business people can increase while providing opportunities for them to develop their business.
"How much do you borrow KUR? Seven percent a year. You have to know. Because if it is not KUR, it is expensive, not that much. This is KUR subsidized by the government," the President explained the benefits of the KUR program.
The President also explained, the government currently has a lot of popular programs and people. It wants the people's economy and people to develop further. He asked the UMKM actors to really take advantage of a number of these programs.
"The government now has people's economic programs and people's economic programs. The first is the Mekaar program," the President said.
The Mekaar Program (Fostering the Prosperous Family Economy) is an empowerment service through group-based financing for underprivileged mothers. The service provides financial assistance in the amount of Rp2 to Rp.5 million, which is given in stages without collateral.
The Mekaar program has been running for the past few years by providing guidance and assistance to its customers in a number of regions. In the long run, Mekaar customers, most of whom are supermicro business people, are expected to be able to expand their business and move to become small or medium-sized businesses.
In addition to Mekaar, there is also a similar program in the form of Ultra Micro Financing (UMi) which targets micro-businesses that are in the lowest level and cannot yet be facilitated by banks.
"There is also a program called UMi. It is even smaller. Also the same, it can be used for small businesses at home," said the President.
Especially for boarding schools, the government also has a Micro Waqf Bank program which is currently in the development stage. This program aims to target the santri and the community around the boarding school environment to start a business or develop an existing business.
"This Micro-Waqf Bank has been established in 44 Islamic boarding schools. One cottage has a capital of approximately Rp.8 billion," said the Head of State.
The head of state said the program had been running for the past two years. Going forward, the government will build more Micro Waqf Banks in Islamic boarding schools throughout Indonesia.
"It has been running for two years. We want to evaluate and improve. Later the other lodges will also be given a Micro Waqf Bank," said the President.
The president hopes that the community will truly utilize a number of these programs. The government provides the greatest opportunity for the community to be able to improve living standards and welfare through the business sector.
"I hope that later on the program, as we give it this afternoon, we can continue to multiply and improve so that the people's economy, the economy of the people, really benefit from every program that exists," said the Head of State.
Also present accompanied the President, Coordinating Minister for Economic Affairs Darmin Nasution, Minister of State Pratikno, Minister of Religion Lukman Hakim Saifuddin, and Governor of West Java Ridwan Kamil. (setkab)