Jakarta, CNBC Indonesia – Legal practitioners believe that the People’s Business Credit (KUR) does not fall under the program for clearing bad debts of micro, small, and medium enterprises (UMKM) in state-owned banks recently signed by President Prabowo Subianto. According to Government Regulation (PP) Number 47 of 2024 which regulates the program, there are several criteria that are not met by KUR.
Article 6 of PP 47/2024 states that bad debts that can be waived are those funded by state-owned banks or non-bank state-owned financial institutions, which have completed their programs when the PP comes into effect. Furthermore, bad debts of UMKM that can be waived are those not guaranteed by insurance or credit guarantees.
Partner at Hanafiah Ponggawa & Partners (Dentons HPRP) Rio Febrianus Pasaribu explained that Minister of Economy Coordinating Ministry Regulation No. 15 of 2020 in conjunction with Regulation No. 8 of 2019 regarding the guidelines for implementing KUR, stipulates that the program should be guaranteed for the fulfillment of financial obligations by the debtor. This guarantee is provided by PT Asuransi Kredit Indonesia (Askrindo) and PT Jaminan Kredit Indonesia (Jamkrindo).
“So, there is a guarantee for KUR, and it is clear that one of the requirements for KUR is that there is a company providing KUR guarantees that issue a guarantee certificate. The level of guarantee within KUR itself is clearly stated in PP 47,” said Rio on the Legal Money segment on CNBC Indonesia, Friday (22/11/2024).
In addition, KUR is not like other government programs that have ceased to operate, such as People’s Business Credit for Farmers (KUT), Small Investment Credit (KIK), Permanent Working Capital Credit (KMKP), and others.
“Meanwhile, KUR is still ongoing, plus it has guarantees.
