REPUBLIKA.CO.ID, JAKARTA -- The Committee for Smallholder Business Credit Policy issued a decision requiring banks to temporarily stop extending smallholder business credits (KUR) beginning December 10.

The step was taken to prevent the distribution of KUR from exceeding the target of Rp37 trillion, Minister of Cooperatives and Small and Medium Businesses Anak Agung Gede Ngurah (AAGN) Puspayoga said here on Thursday (25/12),

Since the KUR program was launched in 2007, the amount of such credits channeled by executing banks reached some Rp36 trillion, he added.

"According to the finance minister's regulation number 190 of 2014 regarding fees on underwriting service, the maximum limit of KUR is Rp37 trillion," AAGN stated.

While the moratorium on the distribution of smallholder business credits is still in place, the government will evaluate the implementation of the program following a report that many residents had difficulty accessing their KUR, Puspayoga noted.

Based on the result of evaluation, the ceiling of smallholder business credits will be slashed to a maximum of Rp25 million from the earlier Rp400 million, the minister affirmed.

"The moratorium will also be applied to banks extending KUR with high non-performing loans (NPL)," he pointed out.

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