Jakarta, June 29 -- Coordinating Minister for Economic Affairs Airlangga Hartarto assured that the increase in the BI Rate will not affect the government's Smallholder Business Credit (KUR), which remains at 6 percent per year.

He said here on Monday that the KUR interest rate is determined under a government subsidy scheme for micro, small, and medium enterprises (MSMEs), meaning it does not directly follow changes in the benchmark interest rate set by Bank Indonesia.

"The increase in the BI Rate does not change the 6 percent interest rate on the Smallholder Business Credit provided by the government. The 6 percent rate is a subsidized interest rate provided by the government for MSMEs," Hartarto explained.

He emphasized that the gove...