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UMi and KUR, Social Impact Investments That Promote Pojok Village, Banten

Jakarta, 15/03/2019 Ministry of Finance - Ministry of Finance initiated a synergy program with State-Owned Enterprises (BUMN) and Non-Bank Financial Institutions (LKBB) in the form of loan assistance for small and micro business actors for village communities.
 
This is a form of Social Impact Investment (SII) in Indonesia that can be used to encourage the welfare of the community. SII is a form of investment that pays attention to the formation of social impacts alongside financial benefits. Some forms of SII include Ultra Micro (UMi) financing and Micro Credit Program (KUR).
 
Minister of Finance Sri Mulyani Indrawati and Minister of Public Works for Public Housing (PUPR) inspected the activity in the "Synergy of Government Programs for People's Welfare" on Friday (15/03) in Pojok Village of Sindangsari Village, Serang, Banten.
 
The Ultra Micro Financing Program (UMi) launched by the Ministry of Finance in mid 2017, has reached 34 provinces and nearly 540 districts / cities to date. UMi financing has been channeled until 2018 amounting to IDR 2.1 trillion to 846,572 micro businesses. In Banten province, the funds disbursed amounted to Rp90.5 billion to 32,538 micro-businesses. Meanwhile, Rp15.8 billion in UMi funding has been disbursed to 5,888 micro businesses.
 
Serang regency is the second region after the Tangerang district in Banten province received the most funding from UMi. The funding target of UMi is for people who have just started micro businesses and require a small capital of up to Rp10 million and also cannot be facilitated by banks. The number of micro businesses has reached 72 percent or 44 million from the business sector nationally.
 
When ultra micro businesses develop into Small and Medium Enterprises (SMEs), the Government can provide affordable financing support through the Micro Credit Program (KUR) scheme. This credit is intended for SMEs that need capital through banks but do not have sufficient collateral. With KUR, SMEs can enjoy affordable loan interest and capital of up to Rp500 million.
 
Since 2015, KUR has been distributed throughout Indonesia as much as Rp333 trillion to 13.8 million SMEs. For the Banten region itself, KUR has been disbursed in the amount of Rp7 trillion to 243 thousand SMEs. Rp660 billion in KUR funds were channeled to 23,372 SMEs in Serang. (fr/nr)