The Ministry of MSME Emphasizes KUR up to IDR 100 Million Without Additional Collateral

Rupiah (Photo: between)

JAKARTA - The government through the Ministry of Micro, Small and Medium Enterprises (UMKM) emphasized that the submission of People's Business Loans (KUR) with a ceiling of up to IDR 100 million does not require additional collateral in any form.

The public is also asked to report if they find practices of irregularities in the distribution of KUR, such as requests for additional guarantees, collection of fees, and the use of intermediary services.

Deputy for Entrepreneurship of the Ministry of MSME and Spokesperson for the Ministry of MSME, Riza Damanik, emphasized that the public did not need to use calo services or pay certain fees to obtain access to KUR financing.

"According to the Guidelines for the Implementation of People's Business Loans, KUR loans up to IDR 100 million are not subject to additional collateral in any form without exception," said Riza in his statement, quoted Sunday, August 2.

Riza revealed that the Ministry of MSME still received a number of reports from the public regarding the alleged request for additional collateral to micro KUR applicants.

In addition, he said there were also complaints about the collection of fees or requests for rewards in the KUR application process.

Referring to the Minister of Coordinating Minister for Economic Affairs Regulation Number 1 of 2026 concerning Guidelines for the Implementation of KUR, the program is designed to expand access to financing for productive and viable business actors, but have not been able to access commercial credit.

"KUR is one of the government's strategic programs to strengthen the people's economy through financing support to productive businesses that do not have additional collateral," he said.

Riza explained that there were two types of collateral in the KUR scheme, namely principal collateral and additional collateral.

The main assets are businesses or objects financed through KUR and the borrower's ability to repay loans.

Meanwhile, additional collateral in the form of assets such as land certificates, vehicle BPKB, and other personal property.

Based on the applicable provisions, KUR distribution institutions are not allowed to ask for additional collateral from debtors with a loan ceiling of up to IDR 100 million.

This provision can only be applied to loans above IDR 100 million, except for farmers of sugarcane and KUR recipients for the agricultural sector who work with credit guarantee institutions.

"Candidates for KUR recipients up to Rp. 100 million can use the main collateral in the form of a business financed through KUR," he explained.

Through the KUR program which receives interest subsidies from the State Budget (APBN), debtors are only charged interest of 6 percent, much lower than commercial loan interest which generally ranges from 10-14 percent or even higher.

Riza added that the government's commitment to expanding access to financing for MSMEs is reflected in the target for the distribution of KUR of IDR 290 trillion in 2026.

Based on data from the Ministry of Finance's Credit Information System (SIKP) as of July 22, 2026, the realization of the distribution of KUR has reached IDR 169 trillion to 2.65 million debtors throughout Indonesia.

Of the total recipients, around 1.1 million debtors are business actors who have just obtained access to formal financing.

Meanwhile, 511 thousand MSMEs have been recorded to have increased business capacity or upgraded.

The government also continues to direct the distribution of KUR to productive sectors with an allocation of around 65 percent of the total financing channeled to the agriculture, fisheries, processing industries, and various other productive sectors that are the drivers of the community's economy.

In addition, credit quality is maintained with a non-performing loan (NPL) rate of around 2 percent.

"The distribution of KUR to the production sector will encourage the birth of more productive businesses, increase production capacity, and open new jobs in various regions," he said.

To maintain the integrity of the program, the Ministry of MSME invites the public to play an active role in reporting any alleged irregularities in the distribution of KUR, including additional collateral requests and levies that are not in accordance with regulations.

Reports can be submitted through SP4N-LAPOR! and e-mail [email protected]. Each report, said Riza, will be followed up in accordance with applicable regulations, including sanctions if violations are found.

Riza emphasized that the government together with all KUR distribution institutions will continue to strengthen the governance of the program so that it is easier to access, targeted, transparent, and free from practices of deviation.

Thus, KUR is expected to be able to strengthen the capital of MSMEs, create jobs, reduce extreme poverty, and encourage national economic independence.

"To all entrepreneurs of MSMEs, this year's KUR ceiling is still available. Please use it to increase business capacity, expand production, and strengthen business competitiveness," he concluded.