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Indonesia's KUR lending reaches about Rp260 trillion by late October as productive share rises to 65.9%

Published Data as of IndonesiaCreditSMEMFI
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Key points

Implications for lenders

With KUR at about Rp260 trillion and the low-income women's loan rate at 8% a year (flat), lenders serving micro and small businesses may find price competition hardest in the segments these programmes target, and can focus on speed, product fit or segments the programmes do not reach. Because most KUR borrowers this year are repeat borrowers, underwriting can check SLIK records for subsidised loans and include their instalments in debt-service calculations.

Implications

ExecutivesSubsidised KUR and the cut to the low-income women's loan rate set a low price anchor that private microlenders and multifinance firms compete against in the same segments.
InvestorsA rising productive share and fewer new borrowers point to KUR lending concentrating on existing micro clients rather than widening reach.
OperatorsBorrowers who also hold KUR or programme loans need to be identified in credit checks, since repayments on those loans compete with private-lender instalments.

Facts

Ministry of MSMEs: on 27 October, Minister Maman Abdurrahman said KUR (Kredit Usaha Rakyat, the government-subsidised people's business credit channelled through banks) disbursement reached about Rp260 trillion between 1 January and 21 October, 1 to 4 million debtors. 2 Of these, 1.6 million were first-time borrowers 3 and 700,000 had graduated to larger schemes. 4 Productive sectors received 65.9% of the total, 5 against a government target of 65%. 6

Coordinating Ministry for Economic Affairs: at OJK's national meeting of regional financial-access teams (TPAKD) on 22 October, Coordinating Minister Airlangga Hartarto said disbursement to 20 October reached Rp257.84 trillion to about 4 million debtors. 7 8 He said Rp300 trillion is budgeted this year for KUR together with other programme credit, including agricultural-machinery, labour-intensive-industry and housing credit. 9 He also said the interest rate on loans to low-income women had been cut on the President's instruction to 8% a year (flat), down from 18%–25%. 10

Analysis

Time series: by 15 November 2025 KUR disbursement stood at Rp238.7 trillion, about 83% of the 2025 target of Rp286.61 trillion, 11 with a productive-sector share of 60.7%. 12 This year's total to 21 October, about Rp260 trillion, is already above that mid-November 2025 level, and the productive share has moved from 60.7% to 65.9%. Fewer borrowers are new, however: 1.6 million so far this year compared with about 2.25 million by mid-November 2025, 13 so a larger share of borrowers are repeat borrowers.

OJK's separate anti-loan-shark programme (K/PMR) had reached 2.28 million borrowers, 14 a fraction of the KUR base. Region: Malaysia's Budget 2027 makes RM3 bn available through Amanah Ikhtiar Malaysia's group microfinance 15; Indonesia's subsidised programmes run on a far larger scale.

Counterpoints and uncertainties

The figures come from two ministries: the Coordinating Minister's Rp257.84 trillion is reported as KUR but was presented together with other programme credit under one budget, while the Ministry of MSMEs gives about Rp260 trillion for KUR, and neither release gives a KUR non-performing-loan ratio for the whole programme. Disbursement volumes say little about repayment: the 2025 comparison is a cumulative total at a later date, and fast growth in subsidised credit to repeat borrowers can raise over-indebtedness if borrowers also use private credit. How the lower rate for low-income women is funded, and whether it spreads to other microloans, is not set out in the releases.

Key figures

  1. KUR disbursed, 1 January–21 October 2026: about Rp260 trillion (compared with Rp238.7 trillion disbursed by 15 November 2025)
    2025 comparison figures are from the Minister of MSMEs' briefing of 17 November 2025 (Infobank report).
    . Cumulative KUR (people's business credit) disbursed in the year to 21 October, as stated by the Ministry of MSMEs. Indonesia, national. Basis date: 21 Oct 2026. Source: Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  2. KUR debtors, 1 January–21 October 2026: 4 million (compared with about 4.05 million by 15 November 2025)
    2025 comparison figures are from the Minister of MSMEs' briefing of 17 November 2025 (Infobank report).
    . Number of KUR debtors served in the year to 21 October, as stated by the Ministry of MSMEs. Indonesia, national. Basis date: 21 Oct 2026. Source: Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  3. New KUR debtors, 1 January–21 October 2026: 1.6 million (compared with about 2.25 million by 15 November 2025)
    2025 comparison figures are from the Minister of MSMEs' briefing of 17 November 2025 (Infobank report).
    . KUR debtors borrowing for the first time in the year to 21 October, as stated by the Ministry of MSMEs. Indonesia, national. Basis date: 21 Oct 2026. Source: Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  4. Graduated KUR debtors, 1 January–21 October 2026: 700,000 (compared with about 1.32 million by 15 November 2025)
    2025 comparison figures are from the Minister of MSMEs' briefing of 17 November 2025 (Infobank report).
    . KUR debtors who moved up to larger or commercial loan schemes in the year to 21 October, as stated by the Ministry of MSMEs. Indonesia, national. Basis date: 21 Oct 2026. Source: Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  5. Productive-sector share of KUR, 1 January–21 October 2026: 65.9% (above the government's 65% target and up from 60.7% at 15 November 2025)
    2025 comparison figures are from the Minister of MSMEs' briefing of 17 November 2025 (Infobank report).
    . Share of KUR disbursed to productive sectors (e.g. agriculture, fisheries, manufacturing), as stated by the Ministry of MSMEs. Indonesia, national. Basis date: 21 Oct 2026. Source: Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  6. Government target for productive-sector share of KUR, 2026: 65%. Minimum share of KUR the government wants channelled to productive sectors in 2026. Indonesia, national. Basis date: 21 Oct 2026. Source: Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  7. KUR disbursed as stated by the Coordinating Minister, to 20 October 2026: Rp257.84 trillion (against Rp300 trillion budgeted for 2026 for KUR and other programme credit)
    The report attributes the figure to KUR but presents it with other programme credit under one budget and gives no breakdown.
    . Disbursement to 20 October reported as KUR, presented by the Coordinating Minister for Economic Affairs alongside other programme credit under one budget. Indonesia, national. Basis date: 20 Oct 2026. Source: Kontan: Airlangga – realisasi penyaluran KUR capai Rp257,84 triliun hingga 20 Oktober 2026 (2026-10-22)
  8. KUR debtors as stated by the Coordinating Minister, to 20 October 2026: about 4 million. Debtors reported with the KUR disbursement to 20 October, as stated by the Coordinating Minister for Economic Affairs. Indonesia, national. Basis date: 20 Oct 2026. Source: Kontan: Airlangga – realisasi penyaluran KUR capai Rp257,84 triliun hingga 20 Oktober 2026 (2026-10-22)
  9. Budget for KUR and programme credit, 2026: Rp300 trillion. Amount budgeted for 2026 for KUR together with other programme credit (agricultural machinery, labour-intensive industry, housing), as stated by the Coordinating Minister for Economic Affairs. Indonesia, national. Basis date: 22 Oct 2026. Source: Kontan: Airlangga – realisasi penyaluran KUR capai Rp257,84 triliun hingga 20 Oktober 2026 (2026-10-22)
  10. Interest rate on loans to low-income women, 2026: 8% a year (flat) (down from 18%–25%). Flat annual interest rate on credit to low-income (pra-sejahtera) women, cut on the President's instruction, as stated by the Coordinating Minister for Economic Affairs. Indonesia, national. Basis date: 22 Oct 2026. Source: Kontan: Airlangga – realisasi penyaluran KUR capai Rp257,84 triliun hingga 20 Oktober 2026 (2026-10-22)
  11. KUR disbursed, 1 January–15 November 2025: Rp238.7 trillion (about 83% of the 2025 target of Rp286.61 trillion). Cumulative KUR disbursed in the year to 15 November 2025, as stated by the Minister of MSMEs. Indonesia, national. Basis date: 15 Nov 2025. Source: Infobank: Realisasi KUR UMKM tembus Rp238,7 triliun per 15 November 2025 (2025-11-17)
  12. Productive-sector share of KUR, 1 January–15 November 2025: 60.7%. Share of KUR disbursed to productive sectors in the year to 15 November 2025, as stated by the Minister of MSMEs. Indonesia, national. Basis date: 15 Nov 2025. Source: Infobank: Realisasi KUR UMKM tembus Rp238,7 triliun per 15 November 2025 (2025-11-17)
  13. New KUR debtors, 1 January–15 November 2025: about 2.25 million. KUR debtors borrowing for the first time in the year to 15 November 2025, as stated by the Minister of MSMEs. Indonesia, national. Basis date: 15 Nov 2025. Source: Infobank: Realisasi KUR UMKM tembus Rp238,7 triliun per 15 November 2025 (2025-11-17)
  14. Borrowers reached by the K/PMR programme (as reported 22 Oct 2026): 2.28 million (up from about 1.7 million reported for the second quarter of 2025). Number of debtors receiving K/PMR credit/financing, as stated by OJK. Indonesia, national programme. Basis date: 22 Oct 2026. Source: OJK press release SP 198/OJK/DKPU/X/2026: Rakornas TPAKD 2026 (2026-10-22)
  15. AIM microfinancing, 2027: RM3 bn. Financing available under Amanah Ikhtiar Malaysia in 2027 (Budget 2027). Malaysia, micro-entrepreneurs. Basis date: 9 Oct 2026. Source: Budget 2027 speech, full text (The Edge Malaysia, 2026-10-09)

Sources

  1. OJK press release SP 198/OJK/DKPU/X/2026: Rakornas TPAKD 2026 (2026-10-22)primary
  2. Fortune Indonesia: Penyaluran KUR capai Rp260 triliun hingga Oktober 2026 (2026-10-27)
  3. Kontan: Airlangga – realisasi penyaluran KUR capai Rp257,84 triliun hingga 20 Oktober 2026 (2026-10-22)
  4. Infobank: Realisasi KUR UMKM tembus Rp238,7 triliun per 15 November 2025 (2025-11-17)
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