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Coordinating Minister for Economic Affairs Airlangga Hartarto. ANTARA/HO-Coordinating Ministry for Economic Affairs/am - 

Coordinating Minister for Economic Affairs Airlangga Hartarto called to improve access to finance for Micro, Small and Medium Enterprises (MSMEs), so that the players could develop their businesses.

"The credit share for MSMEs is currently still low, at only 18 percent. Limited access to financing for MSMEs can likely hinder the development and creation of new businesses in the MSME sector, thereby resulting in limited job creation," Minister Hartarto noted in an official statement here on Friday.

The government also targets bank lending to reach 20 percent of its total credit for MSMEs in 2022 and gradually increase to 30 percent by 2024.

The government has also provided a People's Business Credit (KUR) interest subsidy of three percent for MSMEs, increased the KUR ceiling of Rp373.17 trillion, added the Super Micro KUR scheme for laid-off workers and housewives, integrated the Pre-Employment Card Program with KUR, and made changes to the Special KUR policy for the corporatization of farmers and fishermen.

Hartarto remarked that in a bid to support MSMEs reeling from the impacts of the pandemic, the government had also provided a credit restructuring policy to reduce the burden on MSME debtors.

Minister Hartarto also stated that social assistance programs, such as Productive Assistance from the president and the continued distribution of Pre-Employment Cards, will help increase the number of productive micro and small businesses.

According to the minister, development efforts, through the Partnership and Community Development Program (PKBL) as well as other CSR programs, will also help unbankable MSMEs to improve their class and secure better financing.

"The government continues to strive to increase the added value of the economy through strengthening entrepreneurship, MSMEs, and cooperatives. I am optimistic that the MSME Financing Book would increase the knowledge of academics and policy makers in monitoring and evaluating various policies being pursued by the government to build a better MSME ecosystem," the minister remarked//ANT