Following a coordination meeting on the distribution of smallholder business credit (KUR) on Monday (24/2/25,) Indonesia’s Ministry of Micro, Small, and Medium Enterprises (MSMEs) is targeting to distribute KUR to the tune of IDR 300 trillion (approximately USD 18.4 billion) in 2025, according to reporting from Antara News.
MSME Minister Maman Abdurrahman said that the government has also prepared subsidies to keep KUR interest rates low.
“The total KUR subsidy provided is around IDR 48 trillion, so MSME entrepreneurs will only have to pay an interest rate of about six percent instead of the typical 15 percent,” he said, adding that this year, KUR distribution will be carried out by 49 financial institutions, mainly from the banking sector, including state-owned banks (Himbara) and private banks.
Antara News says the government will strive to ensure that the KUR is absorbed and accessed effectively with the help of supporting policies, such as providing interest subsidies, while also paying attention to quality.
He expects KUR distribution to not just focus on providing capital but also mentoring to help businesses grow.
“Our aim is to enhance the quality of KUR distribution. What was already good will become even better,” he said.
To ensure optimal distribution, he said, the ministry has divided regions into several supervision areas, such as Java I, Java II, Kalimantan, Sumatra, and Eastern Indonesia, says Antara News.
“We will hold coordination meetings at the regional level so we can monitor not only at the central level but truly in each region,” he said.
Furthermore, he pointed out that the ministry may face various challenges in KUR distribution in 2025, including meeting its targets to add 2.4 million new beneficiaries and help 1.7 million businesses upgrade from the micro category.
Source: Antara News
Stock photo by DISRUPTIVO on Unsplash
