The Government Investment Center (PIP) under the Ministry of Finance has disbursed Ultra Micro Financing (UMi) amounting to IDR 35.06 trillion as of Tuesday, December 4, 2023. Ismed Saputra, the CEO of PIP, noted that around 9.48 million borrowers have received UMi financing since its inception. Managing a fund of IDR 10 trillion from 2021, the current UMi fund distribution has tripled the initial amount. Comparing year-on-year records, the figures have escalated significantly. In December 2022, the total UMi disbursed was IDR 24 trillion, benefiting over 6.9 million recipients. The highest UMi financing achievement is on Java Island, amounting to IDR 21.7 trillion, reaching 6.06 million borrowers. Sumatra follows at IDR 8.5 trillion, benefiting 2.16 million borrowers. Meanwhile, other regions such as Bali Nusra received IDR 1.94 trillion for 518,240 borrowers, Sulawesi IDR 2.27 trillion for 591,800 borrowers, Kalimantan IDR 752 billion for 193,100 borrowers, and Maluku Papua IDR 129.16 billion for 31,120 borrowers. Ismed mentioned about 2.2 million recurring UMi borrowers, justifying that small loan amounts ranging from IDR 2 million to IDR 5 million are typically utilized for sustenance purposes such as small-scale businesses. The eligibility criteria for UMi recipients involve possessing a National Identity Card (e-KTP) and not being concurrently enrolled in government credit programs or KUR.
Regarding non-performing loans (NPL), Ismed highlighted the rarity of problematic UMi borrowers. Typically, problematic cases arise due to health issues, fatalities, or sudden business closures. The NPL for UMi remains significantly below 5%, and any touchpoint above that triggers a warning, leading to swift restructuring. Over the last seven years, PIP's NPL remained below 1%, showcasing a stable record. Apart from UMi disbursement, PIP actively supports non-bank financial institutions (LKBB) such as credit unions and cooperatives to provide guidance, fostering micro-business development. The UMi financing has reached 509 districts/cities nationwide and has collaborated with 79 non-bank financial institutions for UMi disbursement.
