In Indonesia, micro, small, and medium-sized enterprises (MSMEs) account for over 60% of GDP but receive only 7% of credit due to low financial literacy. To address this, the Kredit Usaha Rakyat (KUR) was launched in 2007, aimed at improving financing access and enabling MSMEs to transition to commercial loans. Over the past decade, KUR has evolved in phases, focusing on lowering interest rates, expanding loan recipients, and increasing competitiveness, particularly during the pandemic. The program strives for financial inclusion, empowerment, and economic growth by enhancing MSMEs' capabilities.
The KUR program ultimately aims to enable MSMEs to graduate from government-subsidized loans to commercial loans, enhancing their financial independence and growth potential.
Despite representing over 60% of Indonesia's GDP, MSMEs only receive 7% of the country's credit due to low financial literacy and poor business management.
Collection
[
|
...
]