The Government Has Salurkan KUR As Of November 14 Reaches IDR 240.09 T, Coordinating Minister Airlangga: Encourage Business Actors To Advance In Class

JAKARTA - The government noted that the distribution of People's Business Credit (KUR) has reached IDR 240.09 trillion as of November 14, 2025 or 83.77 percent of this year's target of IDR 286.61 trillion.

The financing was distributed to 4.07 million MSME players, with the level of non-performing loans (NPL) maintained low at the level of 2.18 percent as of October 31, 2025.

"This year's KUR performance shows good consistency. The debtor's target has only reached 99.96 percent with 2.34 million business actors, while the graded debtor has even reached 1.17 million debtors. This proves that KUR does not only provide access to financing, but really encourages productive efforts to grow and advance to class," said Coordinating Minister for Economic Affairs Airlangga Hartarto as Chair of the Financing Policy Committee for MSMEs reported by ANTARA, Friday, November 21.

In line with strengthening the economy in terms of production, the distribution of KUR to the production sector also recorded an impressive performance with a portion of 60.7 percent, exceeding the target set at 60 percent.

The government itself affirms its commitment to increasing the role of KUR in supporting the strengthening of domestic supply chains and job creation.

Airlangga explained, until the end of 2025, it is estimated that KUR distribution will be able to encourage the absorption of around 20 million workers, which shows that every one KUR debtor has the potential to increase the absorption of the workforce by four people on average.

Furthermore, to answer the growing need for productive business financing, the Government has set the KUR policy direction for 2026 with a distribution target of IDR 295 trillion or adjusted to budget adequacy.

The distribution target for the production sector has also been increased to a minimum of 65 percent of the total distribution.

"We open full KUR access with a 6 percent flat interest rate for all productive sector business actors without limiting the KUR access frequency. With no restrictions on the frequency of access to cheap financing, there is no more reason for Indonesian MSMEs not to move up and compete," explained the Coordinating Minister.

Meanwhile, the relaxation of policies that are being finalized, especially for KUR recipients, certain criteria include; firstly, the determination of the interest rate/KUR margin is 6 percent flat per year.

Second, eliminating the KUR access frequency limit. This policy is planned to expand relaxation which previously only applies to the Agriculture, Plantation, Livestock, and Fisheries (4P) sectors to include the manufacturing, construction, manufacturing, and all other production activity economic sectors.

Airlangga said, in order to maintain the quality of KUR distribution, the Government will still distribute the target of new KUR debtors and KUR graduates debtors to each KUR distributor.

In line with strengthening the productive financing ecosystem, his party also introduced several financing innovations, including an intellectual property-based KUR (KI) scheme that allows KI to be used as additional collateral.

In 2026, KUR-based KI distribution in the creative economy sector is targeted to reach IDR 10 trillion to encourage growth in the creative economy and intangible asset-based startups.

Meanwhile, as a follow-up to the mandate of the Coordination Meeting of the Financing Policy Committee for MSMEs, the Technical Team of the Financing Policy Committee for MSMEs will formulate a revision of the Coordinating Minister for Economic Affairs Regulation Number 1 of 2022 concerning Guidelines for the Implementation of People's Business Credit as last several times amended by the Regulation of the Coordinating Minister for Economic Affairs Number 12 of 2025.

Prior to the enactment of the revision of the regulation, the 2026 program credit distribution refers to the current laws and regulations.

In addition to KUR, the Government has also expanded the credit benefits of other programs as part of the national financing ecosystem. Alsintan's credit has been disbursed amounting to IDR 59.11 billion to 84 debtors and is projected to encourage the absorption of 168 workers.

Meanwhile, the newly launched Housing Program Credit (KPP) recorded the distribution of IDR 492.13 billion to 245 debtors, with the potential for absorption of 1,225 workers.

For 2026, the Government is targeting a significant increase in the distribution of the program's credit.

Alsintan Credit Ceiling was increased to Rp300 billion, KIPK is targeted to reach Rp500 billion, and KPP to Rp36 trillion to support the program of 3 million houses.

This policy reinforces the Government's focus on strengthening production bases, encouraging industrialization, and increasing national competitiveness.

"We continue to strengthen and expand the Government's program credit ecosystem to reach more levels of society. KUR encourages productive businesses to grow, Alsintan Credit modernizes agriculture, KIPK revives labor-intensive industries, and KPP realizes decent home ownership," he said.

With the right policies and consistent implementation, his party believes these programs will continue to be levers of inclusive and fair economic growth.