During the Covid-19 pandemic, with subsidies, the government set the People’s Business Credit (KUR) interest rate at 3%. This time, they are readjusting the scheme regarding the provision of cheap interest.
Minister of Finance Sri Mulyani Indrawati said the change occurred because the 3% People’s Business Credit interest subsidy was now only intended for super-micro customers, while micro-class customers returned with 6% interest.
“Earlier there were several schemes of changes by the Coordinating Minister and we have agreed, such as for the super-micro interest rate to remain at 3%, then for the micro one it will be 6%, and how many times it will slide. Then for the small ones, there will still be changes,” said Sri Mulyani. meeting at the office of the Coordinating Ministry for Economic Affairs, Jakarta, Monday (28/11/2022).
Sri Mulyani said, with the change in the KUR interest scheme which was subsidized by the government during the Covid-19 Pandemic, the allocation of interest subsidies would certainly experience adjustments. However, she made sure that the amount would adjust to the ceiling target.
“Now from this change, we will be able to accommodate the total loan amount, later it will be calculated, but approximately Rp. 450 trillion,” said Sri Mulyani.
With this decision, President Joko Widodo’s (Jokowi) signal that since the middle of this year he will stop subsidizing KUR interest with an interest rate charged to customers of 3% starting next year is becoming increasingly evident.
Jokowi said that the low-interest rates charged to customers were the result of government subsidies. If it is not subsidized, then the interest borne by customers can reach 16%.
“It’s cheap because it’s subsidized by the government. If it’s not subsidized by the government, how much is the interest, sir?” Jokowi asked BRI Main Director Sunarso who was present at the location.
“If it is not subsidized by the government, the interest is 16% so ladies and gentlemen know. So it is subsidized by the government 13%, only 3% remains,” said Jokowi.
However, Jokowi emphasized that the amount of interest KUR customers receive may be the last this year. This is because the amount of the interest subsidy next year will still see the condition of the state’s financial cash.
“But only this year, next year we don’t know if there will be any more. If we still have a budget, we will continue it. The state budget is there, so we will continue it. Because the KUR subsidy money is not billions, but trillions already,” Jokowi said.