KUR Tembus Rp131.84 Trillion, Financing The Production, Housing And Migrant Workers Sector Is Strengthened

Rupiah (Photo: Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the distribution of People's Business Credit (KUR) continues to increase. Where until June 2025, the realization of KUR distribution has reached Rp131.84 trillion or around 45 percent of the national target of Rp300 trillion.

Airlangga said that of this amount, around 60 percent were channeled to the production sector, and with a total debtor of only 1,007,101 and the value of KUR graduates had touched Rp1.1 trillion.

He revealed that the KUR program is currently being expanded to support food security through a special scheme for sugarcane farmers with financing facilities of up to IDR 500 million which can be accessed by both individuals and groups.

"Then the new program in the KUR credit scheme is one for people's sugar cane where people's sugar cane is given with facilities of up to Rp500,000,000 and can be given to individuals and groups and this can also be for groups or individuals with off-take from sugar factories, including BUMN sugar factories, yes Sugarco," he said at a press conference, Thursday, July 3.

Airlangga hopes that this program will accelerate land revitalization and increase the production of national sugar cane.

"So the revitalization of replanting rather than sugarcane planting is expected to increase yield because so far it can be used, of course, more than the age of the sugar cane itself by revitalizing KUR, this facility can be provided and this can be carried out for the food or agricultural security sector," he explained.

Airlangga said that the Government also launched the expansion of KUR for the housing sector, especially for MSMEs.

He added that the maximum limit for credit was increased to IDR 5 billion for business actors with a maximum capital of IDR 5 billion or turnover of up to IDR 50 billion.

According to him, this credit allows the construction of 38'40 housing units with type 36 in a period of up to 4'5 years.

Airlangga conveyed that in terms of demand (demand side), the government also provides KUR for individuals for house renovations, both used as a place to live and for business purposes.

He added that the total ceiling prepared for this program reached IDR 13 trillion, while the additional ceiling for the housing sector reached IDR 117 trillion.

"Therefore, interest subsidies are given to the construction sector, which is small and medium-enterprised. The government provides a fixed interest subsidy of 5 percent. So if banks provide an example of 11 percent, then MSME contractors can pay 6 percent, but if they give 12 percent, they will pay 7 percent. In accordance with their respective banks, hebara and the private sector," he said.

In addition, Airlangga said that KUR is now also available to Indonesian migrant workers (PMI) without guarantees, with a ceiling of up to Rp. 100 million which can be used to finance departures or job training.