GOVT SETS ASIDE RP20 TRILLION FOR SMALLHOLDERS' CREDIT SCHEME

Mataram, W Nusa Tenggara, Jan 30 (ANTARA) - Minister for Cooperatives and Small and Medium Enterprises (UMKM), Suryadharma Ali, said the government has set aside Rp20 trillion for the smallholders' credit (KUR) scheme in 2009.

"The Rp20 trillion KUR funds this year increase from Rp14.5 trillion in 2008, though last year only Rp12.5 trillion were absorbed with Rp2 trillion of the funds remained unspent," the minister said here on Thursday.
The minister was here to open a working meeting on the empowerment of cooperatives and UMKM at the Senggigi tourist resort area in West Lombok district.
He said that the increase in the KUR funds was intended to empower micro, small and medium businesses with bigger amounts of funds.
Suryadharma Ali said that UKM businesses still badly needed the government's support, particularly when the nation's economy was hit by protracted crisis.
"We hope that the increase in KUR would provide a financial guarantee for about 1.6 million UMKMs," he said.
He said that President Susilo Bambang Yudhoyono launched the KUR program with a credit guarantee facility on November 5, 2007 and it was expected to continue until the ultimate goal was achieved.
The launch of the KUR program was an effort by the government to encourage banks to channel credits for UMKM, which constituted a follow up to a memorandum of understanding among the relevant ministers on October 9, 2007.