Continued support for the KUR program

Oct 13, 2025 by magicalceylontours.com 42 views

The Effectiveness and Impact of the KUR Program from Bank of North Sumatra Tebing Tinggi Branch on MSME Revenue

Introduction

In the realm of micro, small, and medium enterprises (MSMEs), access to credit and financial support is often a significant challenge. The People's Business Credit Program (KUR) is a government initiative aimed at providing broader access to MSMEs, which are often hampered by various obstacles, such as lack of guarantees or access to information. This article focuses on the effectiveness and impact of the KUR program from the Bank of North Sumatra Tebing Tinggi Branch on MSME revenue, highlighting the program's success in increasing MSME income and its potential to create new jobs and support regional economic growth.

Methodology

This research focuses on MSMEs that take part in the KUR program at PT. Bank Sumut Tebing Tinggi Branch. In a period of four years, from 2014 to 2017, as many as 35 SMEs were sampled using saturated sampling techniques, where all members of the population were included as samples. This method is usually applied when the population is relatively small, or when researchers want to produce accurate generalizations with minimal potential errors, similar to the census.

To collect data, researchers made observations, interviews, and disseminated questionnaires to MSME actors involved. The data collected was then analyzed using several techniques, including descriptive analysis, effectiveness analysis, and non-parametric analysis with the application of the MC Nemar test. In this study, there were two hypotheses that were tested: H0, which stated that the KUR program was running effectively against MSME income, and H1, which indicated that the KUR program had a positive impact on MSME income.

Results and Discussion

The results of the data analysis show that the KUR program has a fairly high level of effectiveness, which is 79.42 percent. In addition, this program also shows a positive and significant impact on increasing MSME income in Tebing Tinggi. Thus, it can be concluded that the KUR program which was implemented for four years was proven effective and contributed positively to the increase in the income of MSME actors.

The effectiveness of the KUR program can be viewed from several perspectives. First, this program is able to provide training and guidance for MSME actors regarding financial management, marketing, and product innovation. Second, financial support provided through the KUR program not only helps MSMEs in overcoming liquidity problems, but also provides an opportunity to make strategic investments in their business.

From a policy point of view, the success of the KUR program also shows the importance of collaboration between financial institutions and local governments. The sustainability of this program is very dependent on the understanding and support of various parties involved, including banking, government, and the MSME community itself. It is important to remember that even though this program has shown positive results, challenges remain, such as market fluctuations and the need to continue to innovate so that MSMEs can continue to compete.

Additional Analysis and Explanation

The KUR program is expected to provide broader access to MSMEs, which are often hampered by various obstacles, such as lack of guarantees or access to information. With this program, MSME actors can expand their businesses, increase production capacity, and reach wider markets. In the local economy context, an increase in MSME revenue also has the potential to create new jobs and support regional economic growth.

The success of the KUR program also highlights the importance of monitoring and evaluation of the program. By understanding the effectiveness and impact of the KUR program, policy actors and other stakeholders can make better decisions in formulating programs that support the growth and sustainability of MSMEs in the future.

Conclusion

In conclusion, the KUR program from the Bank of North Sumatra Tebing Tinggi Branch has been proven effective in increasing MSME income and has a positive impact on the local economy. The program's success highlights the importance of collaboration between financial institutions and local governments, as well as the need for continued innovation and monitoring and evaluation. By understanding the effectiveness and impact of the KUR program, policy actors and other stakeholders can make better decisions in formulating programs that support the growth and sustainability of MSMEs in the future.

Recommendations

Based on the findings of this study, the following recommendations are made:

Continued support for the KUR program: The government and financial institutions should continue to support the KUR program, as it has been proven effective in increasing MSME income and has a positive impact on the local economy.
Increased collaboration between financial institutions and local governments: The success of the KUR program highlights the importance of collaboration between financial institutions and local governments. This collaboration should be continued and strengthened to ensure the sustainability of the program.
Continued innovation and monitoring and evaluation: The KUR program should continue to innovate and be monitored and evaluated to ensure that it remains effective and relevant to the needs of MSMEs.
Expansion of the KUR program: The KUR program should be expanded to reach more MSMEs and provide them with access to credit and financial support.

By implementing these recommendations, the government and financial institutions can continue to support the growth and sustainability of MSMEs in the future.
Frequently Asked Questions (FAQs) about the Effectiveness and Impact of the KUR Program

Q: What is the KUR program and how does it benefit MSMEs?

A: The KUR program is a government initiative aimed at providing broader access to MSMEs, which are often hampered by various obstacles, such as lack of guarantees or access to information. The program provides financial support and training to MSMEs, enabling them to expand their businesses, increase production capacity, and reach wider markets.

Q: What are the key benefits of the KUR program for MSMEs?

A: The key benefits of the KUR program for MSMEs include:

Increased access to credit and financial support
Training and guidance on financial management, marketing, and product innovation
Opportunity to make strategic investments in their business
Ability to expand their businesses, increase production capacity, and reach wider markets

Q: How does the KUR program impact the local economy?

A: The KUR program has a positive impact on the local economy by increasing MSME revenue, creating new jobs, and supporting regional economic growth. By providing financial support and training to MSMEs, the program enables them to contribute to the local economy and create economic opportunities for themselves and their communities.

Q: What are the challenges faced by MSMEs in accessing credit and financial support?

A: MSMEs often face challenges in accessing credit and financial support due to various obstacles, such as:

Lack of guarantees or collateral
Limited access to information and resources
High interest rates and fees
Complexity of financial regulations and procedures

Q: How does the KUR program address these challenges?

A: The KUR program addresses these challenges by providing:

Flexible and affordable credit options
Training and guidance on financial management and marketing
Access to information and resources
Simplified financial regulations and procedures

Q: What is the role of financial institutions in the KUR program?

A: Financial institutions play a crucial role in the KUR program by providing financial support and training to MSMEs. They work closely with the government and MSMEs to ensure that the program is effective and sustainable.

Q: How can MSMEs benefit from the KUR program?

A: MSMEs can benefit from the KUR program by:

Applying for financial support and training
Participating in workshops and training sessions
Accessing information and resources
Building relationships with financial institutions and government agencies

Q: What are the next steps for the KUR program?

A: The next steps for the KUR program include:

Continued support and expansion of the program
Increased collaboration between financial institutions and local governments
Continued innovation and monitoring and evaluation
Expansion of the program to reach more MSMEs and provide them with access to credit and financial support.

Q: How can stakeholders support the KUR program?

A: Stakeholders can support the KUR program by:

Providing financial support and resources
Participating in workshops and training sessions
Sharing information and expertise
Advocating for the program and its benefits.

By understanding the effectiveness and impact of the KUR program, stakeholders can make informed decisions and take action to support the growth and sustainability of MSMEs in the future.