Indonesia’s People’s Business Credit (KUR) program disbursed Rp270 trillion (US$16 billion) in 2025, according to Minister for Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman. This figure represents 96 percent of the Rp280 trillion (US$16.5 billion) target for the year.
Program Exceeds Borrower Targets
The KUR program provided support to 4.58 million borrowers in 2025, including 2.7 million new debtors. This surpassed the program’s borrower target by 117 percent. Additionally, the number of “graduated debtors”—entrepreneurs moving to higher business categories—exceeded expectations, reaching 131 percent of the established goal.
Employment Impact and Sector Concerns
Research from Indonesia’s National Research and Innovation Agency (BRIN) estimates the KUR program’s impact on employment to be between 7.7 and 11.6 million jobs. The typical KUR recipient hires two to three workers. Despite these positive employment figures, Minister Abdurrahman cautioned that the majority of jobs created through the program remain within the informal sector.
The ministry indicated it will develop strategies to encourage formalization of these jobs, aiming to provide greater security and guarantees for workers. Beyond direct financing, efforts were also made to streamline business licensing and improve competitiveness through certification programs.
Certification Efforts Expand
In 2025, the Indonesian Investment Coordinating Board (BKPM) issued 3 million Business Identification Numbers (NIB). The Halal Product Assurance Agency (BPJPH) granted 2.8 million halal certifications. Furthermore, the National Standardization Agency (BSN) simplified Indonesian National Standard (SNI) certification for over one million micro and small enterprises, aiming to improve product quality and market access.
Frequently Asked Questions
How much was disbursed through the KUR program in 2025?
Rp270 trillion (US$16 billion) was disbursed through the KUR program in 2025.
How many borrowers were supported by the program?
The program supported 4.58 million borrowers, including 2.7 million new debtors.
What is the estimated employment impact of the KUR program?
Research estimates the program’s employment impact to be between 7.7 and 11.6 million jobs.
Will the Indonesian government continue to prioritize formalizing jobs created through the KUR program, and what specific steps might they take to achieve this goal?
