REPUBLIKA.CO.ID, JAKARTA - The government had set itself the target of channeling 30 trillion IDR in smallholder business credits (KUR) until the end of this year. Cooperatives and Small and Medium Enterprises Minister Syarifuddin Hasan said that in the year to September 2012, the government has extended smallholder business credits worth 23 trillion IDR across the country.

"Judging by state-owned banks` commitment to support the financing of KUR, the government is optimistic that the target of channeling 30 trillion IDR in KUR can be achieved at the end of this year," he said on Wednesday after attending the opening ceremony of Indonesia Market at the Jakarta Convention Hall.

The support of eight state-owned banks and 26 regional government-owned banks had helped reduce the ratio of non-performing KUR to below 2 percent, he said. The minister praised state-owned Bank Mandiri, the country`s largest lender by asset, for its commitment to support the development of small and medium businesses by extending 2.7 trillion IDR in credits to 198 thousand small and medium entrepreneurs across the country.

Bank Mandiri President Director Zulkifli Zaini said the figure accounts for 77.4 percent of the target for this year. "We have committed ourselves to support the KUR program launched by the government," he said. 

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