The Ministry of Agriculture (MOA) recently provided a business credit scheme for agricultural machinery (alsintan) with a low interest rate of 3 percent for farmers and agri businesses. This credit scheme is regulated in the Coordinating Minister for Economic Affairs Regulation (Permenko) Number 3 of 2023 concerning Guidelines for the Implementation of Alsintan Business Credit (Krutan). Minister of Agriculture Syahrul Yasin Limpo (SYL) said that his office continues to encourage farmer groups (poktan) not to hesitate in accessing Krutan to support farming business capital.

The Krutan fund, SYL continued, supports the government’s policy of increasing agricultural mechanization to help increase food production. Accordingly, this can also be used for farmer groups to buy agricultural machinery, from pre-harvest to post-harvest. “Keep in mind, alsintan which is assistance from the government is indeed limited. However, this does not rule out the possibility that if there are farmer groups that want to have their own equipment, they can apply for credit to the bank,” SYL said, as quoted from Kompas, Wednesday (3/23).

Director-General of Agriculture Infrastructure and Facilities Ali Jamil said that the Directorate-General of Agriculture Infrastructure and Facilities has a Directorate of Financing that is an extension of the Ministry of Agriculture. “In this case, the task is to help facilitate farmers in accessing banks in utilizing business credit funds,” Ali said.

Ali hopes that the permenko can be implemented better by the implementing banks, so that it can be utilized well by farmers and business owners.

In order to facilitate farmers and business actors in accessing banks and utilizing business credit funds, the Directorate of Financing of the Directorate General (Ditjen) of Agricultural Infrastructure and Facilities (PSP) became an extension of the Ministry of Agriculture. Ali Jamil, Director General of Agricultural Infrastructure and Facilities (PSP) of MOA, hopes that the implementing banks can better implement the Permenko so that it can be well utilized by farmers and business owners.

In order to increase agricultural productivity in Indonesia, PT Kubota Machinery Indonesia is ready for anyone who seeks reliable partner for farmers and business owners throughout Indonesia. By providing high quality agricultural machinery and reliable technical support as well as cooperation with banks and financing parties, PT Kubota Machinery Indonesia is ready to help farmers and farmer groups achieve better crop yields.