Government Targets 12 Million Jobs Through KUR Distribution

Rupiah (Photo: antara)

JAKARTA - The government is targeting the creation of 12 million jobs through optimizing the distribution of People's Business Credit (KUR).

Deputy for Business Management and Development of State-Owned Enterprises, Coordinating Ministry for Economic Affairs Ferry Irawan stated that overall, the total distribution of government program loans in 2025 is targeted to reach IDR 300.48 trillion.

Meanwhile, the details consist of KUR amounting to Rp282.57 trillion, Alsintan Credit Rp199.42 billion, Labor Intensive Industry Credit (KIPK) Rp754 billion, and Housing Program Loans Rp17.16 trillion.

"We hope that it can improve financing services in our society on the one hand, then it can also encourage growth and job creation," he said at the Indonesian Economist 100 Sarahsehan event, Tuesday, October 28.

Ferry added that specifically for KUR, it is estimated that it will make a significant contribution to the absorption of labor in the industrial sector. According to data from the National Research and Innovation Agency (BRIN), each KUR debtor is able to absorb at least three workers.

"And if we look at the history, the average KUR is around 4 million debtors per year. So that way, we hope that there will be 12 million labor absorptions that we can do," he said.

As of October 17, 2025, the realization of KUR distribution has reached Rp217.20 trillion, or 76.86 percent of the annual target, with a total debtor of 3.69 million people and a non-performing credit rate (NPL) of only 2.28 percent, much lower than the national MSME Credit NPL of 4.55 percent.

Throughout 2025, KUR has been distributed to 2.34 million new debtors and 1.17 million old debtors. In addition, this program succeeded in increasing the class for 926,742 debtors.