Government Holds KUR Mass Akad For 800,000 Debtors

Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman. (Photo: Doc. Ministry of MSMEs)

JAKARTA - The Ministry of Micro, Small and Medium Enterprises (MSMEs) together with the Coordinating Ministry for Economic Affairs, the Ministry for the Protection of Indonesian Migrant Workers, the Ministry of Housing and Settlement Areas, local governments, financial institutions, and relevant stakeholders held a Mass Akad for the People's Business Credit Program (KUR) for 800,000 MSME debtors spread across 38 provinces.

Minister of MSMEs Maman Abdurrahman expressed his belief that the distribution of KUR in 2025 of IDR 300 trillion to 2.34 million new debtors and 1.17 million debtors of graduation will have a significant impact on the creation of national jobs.

"Of the total target of around 3.5 million debtors that we distribute through the KUR program, each business entity is able to absorb 2 to 3 workers. This means that there are around 7 to 9.5 million workers who will be absorbed through this KUR program," said Maman in a statement from the media, Tuesday, October 21.

Just so you know, until now, the distribution of KUR has reached more than Rp218 trillion to more than 3.7 million MSME debtors, including new debtors and graduate debtors.

The realization of distribution to the production sector reached Rp132.5 trillion or 60.6 percent of the total distribution. This achievement makes 2025 a historic momentum because for the first time the KUR allocation for the production sector has exceeded 60 percent.

"Why is this 60 percent figure important? Because when KUR is allocated to the production sector, the economic impact is much wider and the absorption of its workforce is greater," he said.

However, Maman admits that there are still a number of notes in the KUR distribution process. He hopes that this mass contract momentum will become a joint commitment between ministries/agencies, local governments, and financial institutions to continue to strengthen support for MSME entrepreneurs throughout Indonesia.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the target for KUR distribution of IDR 300 trillion by 2025 must be increasingly focused on productive sectors.

"Prolific businesses usually employ three to five workers. So, increasing KUR in this sector will increase the number of workers in the entrepreneurial sector," said Minister Airlangga.

He added that the government and the Ministry of MSMEs also pushed for an increase in the target of distributing KUR to the production sector from 60 percent by 2025 to 62 percent by 2026.

This step is part of a sustainable strategy to strengthen the structure of the national productive economy and ensure KUR becomes an effective instrument in creating jobs and encouraging economic growth.