STRATEGIC OPTIMIZATION OF KUR DISTRIBUTION TO REDUCE NON-PERFORMING LOANS: A SWOT-BASED CASE STUDY OF BANK JATIM KARANGPLOSO

Abstract

The People's Business Credit (KUR) program supports the growth of Micro, Small, and Medium Enterprises (MSMEs) and the national economy. However, the high risk of non-performing loans (NPLs) poses a significant challenge for banks. This study uses a qualitative approach and SWOT analysis to analyze credit risk management strategies in the distribution of KUR at Bank Jatim, Karangploso Sub-Branch. Data were collected through two main methods: in-depth interviews as the primary method and a literature review as a supporting method. Interviews were conducted directly with informants with competence and experience in credit-related fields to obtain rich, contextual, and in-depth qualitative data. The findings indicate that the leading causes of problematic loans include weak repayment ability and willingness, misuse of funds, and lack of post-disbursement supervision. The bank's strengths are its referral-based borrower recruitment system and digital monitoring tools. Meanwhile, internal challenges such as administrative constraints and high risks for MSMEs must be addressed. Opportunities for collaboration with local institutions and technology adoption show strong potential. Bank Jatim applies mitigation strategies through strict credit analysis, active monitoring, and loan restructuring. The SWOT analysis has proven effective in supporting strategic decision-making to maintain credit quality and ensure the sustainability of the KUR program.