REPUBLIKA.CO.ID, BANDUNG -- West Java Governor Ahmad Heryawan welcomed the decrease in interest rates for the perpetrators of Small and Medium Enterprises (UKM). The decline was assessed to be very profitable for West Java because the number of UKM in West Java was the largest in Indonesia.

"Interest rates of UKM will be lowered to 9 percent, we welcome it. Because, the interest rate will surely excite our UKM," said Heryawan told reporters recently.

According to Heryawan, UKM today was less passionate. Because, Indonesian bank loans were not in favor of medium entrepreneurs. "It is deemed unfair. If large loans given small interest, but for UKM the interest is bigger," he said.

Heryawan said, he had a meeting with President Joko Widodo (Jokowi). The meeting, which was held recently have discussed the interest rate of UKM and ordinary loan.

"Now it equated, even lower than the big interest. I welcome this program," he said.

In West Java, said Heryawan, the entrepreneurs of UKM were the largest. So with this easiness, UKM could be passionate. Actually, West Java already started alignments to UKM by deploying Credit program Cinta Rakyat (KCR).

"We have already started with the KCR. Our KCR is 8.5 percent," he said.

In contrast to UKM credit, he said, KCR value of the loan was above Rp 50 million. While UKM, the maximum limit could be hundreds of millions. "I think something like that. So for new businesses, there are more a lot of interest for small businesses," he said.

With the decline in interest rates of these UKM, he said, will have an impact on the development of the industry. If small and medium-sized industries to grow properly, then the industry in Indonesia will be more sturdy.

"If it solid, we can compete with goods from outside," he said.

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