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Increasingly Interested by Farmers, Absorption of Agricultural KUR Until August Reaches 67.29%

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TRIBUNNEWS.COM, JAKARTA – The Agricultural People’s Business Credit (KUR) program managed by the Ministry of Agriculture (Kementan) in collaboration with banks is increasingly in demand by farmers. Until August 15, 2021, the absorption of Agricultural KUR reached 67.29 percent or Rp. 47.1 trillion.

Minister of Agriculture Syahrul Yasin Limpo (SYL) asked farmers to continue to take advantage of this Agricultural KUR program. KUR Agriculture helps farmers in developing agricultural cultivation from upstream to downstream. “KUR Agriculture is a financing program with interest subsidized by the government to help farmers develop their agricultural cultivation from upstream to downstream,” said Minister of Agriculture SYL.

Director General of Agricultural Infrastructure and Facilities (PSP) of the Ministry of Agriculture, Ali Jamil added, KUR absorption worth Rp. 47.1 trillion was distributed to several sectors, including food crops worth Rp. 12.4 trillion or equivalent to 46.26 percent of the allocation of Rp. 26. 8 trillion. Next is horticulture which was realized worth Rp. 5.8 trillion or equivalent to 74.90 percent of the allocation of Rp. 7.8 trillion.

For plantations, Rp. 16.7 trillion was channeled or equivalent to 82.37 percent of the allocation of Rp. 20.2 trillion. The realization of livestock is Rp. 8.6 trillion or equivalent to 57.59 percent of the total allocation of Rp. 15 trillion.

“For mixed farming, the realization is worth Rp. 2.9 trillion. For the agricultural, plantation and livestock services sector, the realization is Rp. 536.4 billion,” explained Ali.

Ali asked all stakeholders to continue to boost the absorption of Agricultural KUR in the field, because it has many benefits for the community. “Agricultural KUR not only moves the basic economy of the community, but also opens and creates job opportunities. This is what we need in the midst of a pandemic so that the national economy will rise again,” said Ali.

Ali continued, Agricultural KUR can be used by farmers for various capital purposes, such as to develop their agricultural cultivation, starting from the procurement of fertilizers to building a packaging industry in the downstream sector.

“We encourage farmers to take advantage of this Agricultural KUR which can be used as a trigger factor for increasing productivity and increasing the welfare of the farmers themselves,” said Ali.

The Director of Financing for the Directorate General of PSP at the Ministry of Agriculture, Indah Megahwati, detailed that, based on this data, 1,461,483 debtors had been facilitated through KUR Agriculture. “Daily the absorption of Agricultural KUR is increasing, because it is intended for farmers. So, various needs of farmers can be fulfilled by accessing this Agricultural KUR,” said Indah.

Indah invites farmers to continue to use KUR Agriculture because it has many benefits. In addition, Agricultural KUR also has a low interest rate that can be paid back at the time of the main harvest.

“The benefits of this Agricultural KUR are many with a fairly light interest. Agricultural KUR can also be submitted without collateral with a certain loan limit,” said Indah.

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