Availability of financing for farmers is one important factor in achieving food security. Several programs have been done by the government to improve the ability of agricultural financing for farmers, one through Credit Program for agricultural businesses. Some credit programs designed for farmers are “Kredit Ketahanan Pangan dan Energi” (KKPE), “Kredit Pengembangan Energi Nabati dan Revitalisasi Perkebunan” (KPEN-RP) and “Kredit Usaha Pembibitan Sapi” (KUPS).
The existence of the credit program are currently considered important primarily because of the target self-sufficiency and increase rice production by 7% in 2011 and targets 10 million tons of rice surplus until 2014.
Some of the law that became the foundation for the implementation of credit programs in Indonesia are as follows:
a. Inpres No. 1 / 2010 on the Acceleration of the Implementation of National Development Priorities 2010, Improving Access to Farmers / Farmers Against Credit Program (KUR, KKPE, KPEN-RP, KUPS)
b. Inpres No. 3 /2010
c. UU 41 Tahun 2009
d. Permenkeu No: 48/PMK.05/2009 about KKPE
e. The regulations of the Minister of Agriculture as guidance Permenkeu about KKPE.
