TEMPO.CO, Jakarta - The government will focus more on the agricultural sector in the allocation of a micro-loan program (KUR) for 2017, the Cooperatives and Small-Medium Enterprises' secretary Agus Muharram said at the national coordination meeting of the Indonesian Chamber of Commerce and Industry. “Therefore, a special scheme in the agriculture sector will need to be developed based on the characteristics of priority commodities,” he said in a written statement on Tuesday, November 29, 2016.
Agus said that the Government is aiming to maintain KUR allocation for 2017 at Rp100 trillion to Rp200 trillion. As such, the Government will push for more KUR allocation to the agricultural sector. According to him, allocation of KUR to the sector indicates that the Government has put more attention to agriculture sector through cooperatives.
Accordingly, Agus has urged local governments to actively push for increased KUR allocation to the agricultural sector. In addition, KUR can extensively be allocated through coordination with local agricultural service in order to protect farmers from both harvest failure and damage. “Thus, we shall consider providing agricultural insurance,” he said.
Agus said that the Financial Service Authority (OJK) has named at least 38 recommended KUR distributors. But, only 29 KUR distributors passed, comprising 27 banks and 2 non-bank financial institutions (LKBB). Moreover, cooperatives may also serve as KUR distributor in accordance with the Cooperatives Minister Regulation No. 9/2016.
The allocation of KUR for 2016 by economic sector being 68.36 percent to wholesale and retail trade sector; 15.16 percent to agriculture, hunting, and forestry; 10.82 percent to services; 4.45 percent to processing industry; 1.13 percent to fisheries. “Most have been allocated to the provinces of Central Java, East Java, and West Java,” Agus said.
LARISSA HUDA
