Encourage Informal Perpetrators To Become Formal, 2026 KUR Distribution Targeted At IDR 320 Trillion For MSMEs

Minister of MSMEs Maman Abdurrahman (between)

JAKARTA - Minister of Small, Micro and Medium Enterprises (MSMEs) Maman Abdurrahman said that he had received a new mandate to encourage business actors in the informal sector to switch to become formal business actors through various programs.

Maman explained that in 2026 the government targets the distribution of financing of IDR 320 trillion for the MSME sector, with 65 percent directed to the production sector.

"The target in 2026 is IDR 320 trillion to be pushed to the MSME sector, then 65 percent is allocated to the production sector. So the assignment from the committee has increased by about 5 percent," he explained to the media crew, Monday, November 17.

He also added that there were changes related to the People's Business Credit (KUR) scheme for MSMEs, which so far, submissions were limited to only four times for the production sector and twice for the trade sector. But now, this limit has been removed so that MSME actors can apply for KUR repeatedly until their efforts are really strong and ready to be independent.

"Now it has been opened, so it can be several times, the repetition can be several times until the MSMEs are really strong and ready to let go. There are no restrictions," he explained.

Maman said that previously in the KUR interest rate regulation it increased gradually from 6 percent in the first submission to 9 percent in the fourth submission. Now, the entire KUR scheme regardless of the number of submissions is set flat at the 6 percent interest rate.

"Yes. So if you want the first, second, third, fourth, fifth, all flat 6 percent," he explained.

Maman emphasized that this new policy was directed by President Prabowo Subianto through the MSME Financing Committee led by the Coordinating Minister for the Economy Airlangga Hartarto.

He added that this step was taken to provide stimulus and strengthen the movement of the national economy.

Maman explained that the change in the rules came into effect in early January 2026, and the regulations will be outlined in the relevant Ministerial Regulations that are being prepared.

Previously, Maman reported that until November 15, 2025, the realization of the distribution of People's Business Credit (KUR) had reached Rp238 trillion or 83 percent of the target of Rp286 trillion.

"I specifically (credit) MSMEs, from the target that has been set at IDR 286 trillion, Alhamdulillah, IDR 238 trillion has been disbursed, so it's around 83 percent," he said.

Maman also said that the distribution of KUR for new debtors had reached 96 percent of the target of 2.34 million debtors, or the equivalent of 2.25 million debtors.

Meanwhile, the achievement of debtors of graduation, namely business actors who rose class from the super micro to micro, micro to small, or small to medium categories, has reached around 1.3 million debtors or 112 percent of the target of 1.2 million debtors.

"Alhamdulillah, the debtor of graduation exceeded the target of 112 percent, which was around 1.3 million," he said.

He added that the government is targeting 60 percent of the total KUR ceiling of IDR 286 trillion to be distributed to the production sector.

Maman said that for the first time since the KUR program was launched, this target has been achieved with a realization of 60.7 percent.

Maman is optimistic that the distribution to the production sector can increase to 61 percent by the end of December 2025.

"This is the first time in the history of the Qur'anism Program, only now that we have realized it, which is at 60.7 percent, that's the graph. This is from 2020, it's never reached 60 percent, 2021, 2022, 2023, now thank God we have 60.7 percent in 2025, God willing, in December we will achieve 61 percent, it will increase again at 61 percent," he explained.

Regarding the potential for employment, Maman explained that the KUR program is estimated to be able to absorb 8 to 11 million workers.

However, he admits that there are still challenges because most of the employment in the MSME sector is still dominated by the informal sector.

"Indeed, I have to admit that there are still challenges, the absorption of labor in the MSME sector is still the informal sector," he said.