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The government took the decision to increase the ceiling of non-collateral smallholder business credits (KUR) to Rp100 million, from Rp50 million earlier.

"The government has approved several changes in KUR policies, including a change in the scheme of non-collateral KUR, to a maximum of Rp100 million, from Rp50 million earlier," Coordinating Minister for Economic Affairs Airlangga Hartarto noted in a written statement released on Tuesday.

The non-collateral KUR, with an upper limit of Rp100 million, can be utilized for small KUR. The recipients of small KUR can become participants of the Workers Social Security Agency (BPJS Ketenagakerjaan) in accordance with Presidential Instruction No. 2 of 2021.

The government has additionally decided to raise special KUR allocations for micro, small, and medium industries or other productive sectors that can be developed into special KUR.

Under the earlier rules, special KUR was particularly intended for smallholder plantation, smallholder husbandry, and smallholder fishery commodities.

The government, through the Committee of Financing Policies for MSMEs, has also decided to increase the KUR interest subsidy to three percent for a period of six months until the end of 2021.

Hence, the government has allocated Rp4.39 trillion to meet the total requirements for KUR interest subsidy for 2021 at Rp7.84 trillion.

With several changes in policies, the government has decided to raise the ceiling of non-collateral KUR to Rp285 trillion, from Rp253 trillion earlier. (Antaranews)