KUR Distribution Reaches IDR 131.84 Trillion As Of Semester I 2025, NPL Is Guarded By Good

JAKARTA - The government recorded the realization of the distribution of People's Business Credit (KUR) reaching Rp131.84 trillion until the first semester of 2025, or covering 45.86 percent of this year's target of Rp300 trillion.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that KUR until June 30, 2025 had reached 2.28 million debtors with a non-performing credit level (NPL) maintained at the level of 2.38 percent, much lower than NPL for MSME loans in general at 4.36 percent.

"KUR's achievement in the first semester of 2025 is quite positive, more importantly 60 percent of KUR distribution has succeeded in entering the production sector according to our target. This shows that KUR really encourages MSME productivity," said Airlangga as quoted by ANTARA, Friday, July 11.

He explained, to support President Prabowo Subianto's Astacita vision, the government has prepared two major policy breakthroughs in the KUR program.

One of these breakthroughs is the ease of access to KUR financing for the food farming sector, especially sugarcane commodities. This scheme is designed to support the target of self-sufficiency in consumption sugar in 2028.

"Imagine, 86 percent of the people's sugar cane has grown and needs to be rejuvenated soon. Without quick intervention, the dream of self-sufficiency in sugar will be difficult to achieve. The ease of KUR for the agricultural sector, especially people's sugar cane commodities, is here as a concrete solution," he explained.

The government provides relaxation of KUR access for sugarcane farmers, including for people who have access to commercial credit.

Business partners (offtakers) were also given the authority to validate their fostered farmer groups to accelerate the disbursement process.

KUR debtors who are off-taker inmates and guaranteed directly by off-takers as validists are also exempt from additional collateral requirements. Agunan is quite a financed business.

Then, the next breakthrough is the development of a new credit scheme for the housing sector as part of the support for the Three Million Houses Program.

On the supply side (supply), developers (developers), contractors, and MSME-scale material traders can access loans of up to IDR 5 billion with a fixed interest subsidy of 5 percent per year.

Meanwhile, on the demand side, MSMEs who want to buy, build, or renovate houses for business activities get a ceiling of up to IDR 500 million with a tiered interest of 6-9 percent per year and a tenor of up to five years.

The housing sector has a powerful multiplier effect of the economy. Each rupiah that enters will produce Rp1.74 economic output. Not to mention the potential to absorb 13.8 million workers per year. This is not just building a house, but building an economic future," explained Airlangga.

Therefore, the government increased the KUR ceiling in 2025 of IDR 117 trillion outside the pre-determined ceiling. This addition was also followed by an interest subsidy budget allocation of IDR 1.2 trillion.

Airlangga added that the first half of 2025 also recorded progress in financial inclusion.

More than one million business actors accessed KUR for the first time, while the other half a million managed to advance to class or graduation.

"This proves KUR is not just giving fish but actually giving hooks and teaching how to fish," he explained.

Synergy between the central and regional governments also showed positive results. Of the 1.87 million potential debtors uploaded by local governments, 1.27 million have been converted into active debtors. The provinces of North Maluku, Yogyakarta and South Sulawesi recorded the highest conversion rate.

Other financing programs such as Agricultural Equipment and Machine Loans (Alsintan) also recorded progress, with 15 banks ready to disburse funds for agricultural mechanization.

Meanwhile, the Labor Intensive Industry Credit is still in the stage of finalizing the regulations.

To maintain momentum, Airlangga said, the government has prepared a budget for interest subsidies worth IDR 38.28 trillion for 2025.

"With the performance of the first semester which is encouraging the projected distribution until the end of the year, it is predicted that it will exceed the target. KUR, Alsintan Credit, KIPK, and various government financing programs are the embodiment of programs that not only provide capital but also hope," said Airlangga.

"Through continuous innovation and support from all parties, KUR will continue to be the backbone of the people's economic empowerment in realizing Indonesia Gold 2045," said Airlangga.