Implementation of the KUR (People's Business Credit) Guidance Program in the City of Banjarmasin Micro Business and Manpower Cooperative Service

Abstract

This research examines the implementation of the Kredit Usaha Rakyat (KUR) program, launched by the government to encourage banks to provide financing to MSMEs. The program involves the Cooperatives, Micro, and Manpower Office (Diskopumker) as facilitators, with government-backed guarantees in collaboration with eight distribution banks. The research aims to analyze the role of the office in facilitating KUR assistance and identify factors that support and hinder its implementation. Using a qualitative approach and field research methods, including interviews and documentation, the study focuses on its role and the challenges of implementing KUR in city of Banjarmasin. Findings reveal that the Cooperatives, Micro, and Manpower Office plays a pivotal role in collaborating and coordinating with both government and private banks to facilitate access to KUR. Key activities include socializing the program to business actors, providing business development training, and enhancing market access. The provision of capital from banks has significantly supported MSMEs in improving their businesses. However, challenges persist, such as public misconceptions that KUR is direct government assistance, creating misunderstandings among prospective business actors. Despite these obstacles, efforts have substantially contributed to MSME growth by leveraging credit mechanisms, empowering business actors, and fostering sustainable economic development in Banjarmasin City.