REPUBLIKA.CO.ID, JAMBI -- President Joko Widodo (Jokowi) has pledged to cut micro-loan (KUR) interest rate to 7 percent next year.

"The KUR interest rate had once reached 21-22 percent and currently stands at 9 percent. We will make an effort to lower the KUR interest rate to 7 percent next year," the president said while addressing a gathering at the commemoration of the 69th National Cooperatives Day in Jambi province on Thursday.

On the occasion, the president invited Yeni Triana, who has just received Rp200 million in KUR from state lender Bank Mandiri with an annual interest rate of 9 percent to develop banana crispy chips industry.

The president assured Yeni that the KUR interest rate will be lowered to 7 percent next year.

To help ease funding for micro and small businesses, the government has cut KUR interest rates from 22 percent to 12 percent and further to 9 percent to boost micro and small businesses.

The amount of KUR micro loans extended from January 4 to July 15 this year reached Rp55.69 trillion, with the number of debtors exceeding 2.5 million.

The government has set itself the target of extending KUR to the tune of Rp100 trillion by the end of this year, with the number of debtors expected to increase.

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