KUR in Eastern Indonesia Reaches 12 Percent of the National Total

JAKARTA - The Ministry of Micro, Small, and Medium Enterprises (MSMEs) emphasized the need to increase the distribution of People's Business Credit (KUR) in the production sector in Eastern Indonesia (Sulawesi, Maluku, and Papua).

Deputy Minister of MSMEs Helvi Moraza stated that the distribution of KUR in Eastern Indonesia is quite good. A total of IDR 20.6 trillion in KUR has been distributed to 352,936 beneficiary debtors as of August 25, 2025, or approximately 12 percent of the national KUR total.

Meanwhile, the Non-Performing Loan (NPL) rate, or the average non-performing loan (NPL) in Eastern Indonesia, is also well-maintained at below 3 percent.

"However, based on the distribution institutions, we note that distribution to the production sector still needs to be increased. Only four distributing banks have achieved the target of 60 percent distribution to the production sector," Helvi said on Friday, August 29.

The four banks, the Deputy Minister continued, are BPD Sulselbar (70.5 percent), BRI (68.9 percent), BPD SulutGo (63.2 percent), and Bank Sinarmas (63.4 percent).

The Deputy Minister stated that regionally, the distribution of People's Business Credit (KUR) to the production sector has actually shown quite good results, at 63.54 percent. KUR funds are distributed to priority sectors based on the geographical characteristics and potential of Eastern Indonesia.

"Production sectors such as agriculture, livestock, fisheries, processing industries, and productive services are the main pillars of the real economy in Eastern Indonesia. We need to encourage KUR distributors to shift their focus to sectors that create greater added value for the regional economy," he said.

The Deputy Minister also emphasized the importance of the active role of regional governments in facilitating access to KUR distribution for MSMEs. He stated that as of August 25, 2025, the South Sulawesi Regional Government had uploaded data on 3,311 prospective KUR borrowers from the eastern Indonesian region, with a contract conversion rate of 94.5 percent. Of that number, 3,130 MSMEs have completed their KUR contracts.

"This is largely due to a lack of information and lack of understanding from local governments or relevant agencies regarding data upload procedures," he said.

Deputy Minister Helvi stated that the largest distribution of KUR in Eastern Indonesia Region was in South Sulawesi Province, amounting to IDR 10.4 trillion, followed by Southeast Sulawesi IDR 2.53 trillion, Central Sulawesi IDR 2.21 trillion, West Sulawesi IDR 1.38 trillion, Papua IDR 1.29 trillion, North Sulawesi IDR 883 billion, Maluku IDR 642 billion, West Papua IDR 488 billion, North Maluku IDR 389 billion, and Gorontalo IDR 367 billion.

South Sulawesi also became the province with the largest number of potential MSME KUR recipients uploaded data in Indonesia. The South Sulawesi Regional Government reported a total of 305,562 uploaded debtors. Of that number, 291,496 borrowers successfully secured KUR loans, with a conversion rate of 95.4 percent.

"KUR disbursement in Eastern Indonesia shows that BRI is the largest KUR disbursement provider, with IDR 14.8 trillion disbursed to 304,301 borrowers," said Helvi.

"Meanwhile, the Regional Development Bank with the largest KUR disbursement realization in Eastern Indonesia is the BPD of South and West Sulawesi, with a disbursement value of IDR 296.03 billion to 2,125 borrowers," she said.

However, Helvi highlighted that many regional governments in Eastern Indonesia have not optimally uploaded data on potential MSMEs receiving KUR. This needs to be improved so that MSMEs in each province have access to the widest possible financing.

Deputy Minister Helvi emphasized that the government continues to monitor improvements in the quality and quantity of KUR disbursement in 2025, in line with the targets set in the KUR Policy Committee Meeting (Rakomjak).

The government has set a target of IDR 300 trillion in KUR (People's Business Credit) disbursement by 2025. In addition, there are quality targets, including 2.34 million new borrowers, 1.17 million graduated borrowers, and 60 percent of the KUR disbursement target for the production sector.

"We also remind you that loans under IDR 100 million for the KUR program must be guaranteed without additional collateral," said Helvi.