Minister Of Agriculture Amran Targets Regulation Of KUR Farmers In Tebu Terbit This Month

JAKARTA - Minister of Agriculture Andi Amran Sulaiman targets regulations regarding the increase in the maximum loan limit or People's Business Credit (KUR) ceiling for sugarcane farmers of IDR 500 million, published in July 2025.

"The government targets regulations related to KUR for sugarcane farmers to be issued in July 2025," said Andi Amran as quoted by ANTARA, Monday, July 7.

Amran said that the regulation aims to accelerate the achievement of sugar self-sufficiency and provide access to funding for sugarcane farmers, considering the condition of Indonesia which is still dependent on sugar imports.

Currently, he continued, the cane harvest area is 520,000 hectares, with sugarcane productivity of around 63.78 tons per hectare and a rendemension of 7.42 percent, so the production of white crystal sugar (GKP) is estimated at 2.46 million tons.

Meanwhile, sugar demand, both for consumption and industry, reached 8.1 million tons, with details of 4.7 million tons for industry and 3.4 million tons for consumption.

Thus, there are still 5.6 million tons short of imports.

Therefore, with the new KUR ceiling scheme for sugarcane farmers, it is hoped that the government can increase domestic sugar production.

The scheme was decided at the Limited Coordination Meeting (Rakortas) at the Coordinating Ministry for Economic Affairs Jakarta on July 3, 2025.

"Through this sugarcane KUR scheme, it is hoped that sugarcane production will increase significantly, so that efforts to realize self-sufficiency in sugar can be realized," he said.

Previously, Amran explained, the latest KUR scheme policy provided significant convenience for farmers.

If previously the KUR credit ceiling was accumulative to IDR 500 million, now farmers can access the financing to this limit repeatedly, without having to switch directly to commercial credit after reaching the initial limit.

"So, the credit is a ceiling of Rp. 500 million and this is a 6 percent interest. It used to be an accumulation of Rp. 500 million. If he had already received Rp. 500 million, then commercial. Now we are open," he said.

In the future, the sugar factory will be involved as avalist, namely credit guarantor, without the need for collateral from farmers. In this scheme, the factory is responsible for credit, making it easier for access to financing for farmers.