On December 24, 2024, in Jakarta, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced ambitious targets for the government's Kredit Usaha Rakyat (KUR) program, aiming for a distribution of IDR 300 trillion (approximately $20 billion) in 2025. This initiative is designed to enhance access to financing for micro, small, and medium enterprises (MSMEs) across the nation.
The 2025 KUR target is expected to reach over 2 million new debtors and support 1 million graduates from the program. Hartarto emphasized that the government remains committed to expanding KUR to stimulate economic growth, particularly for MSMEs, which are vital for Indonesia's economy.
This meeting also resulted in strategic decisions to strengthen the KUR ecosystem, including institutional restructuring and the approval of changes to the KUR implementation guidelines. These adjustments aim to optimize the program's performance and enhance support for Indonesian migrant workers through expanded financing options.
As of December 23, 2024, KUR distribution has surpassed the 2024 target, reaching IDR 280.28 trillion, with a notable 7.8% year-over-year growth. The production sector accounted for 57.8% of this distribution, underscoring KUR's role in fostering real sector growth.
Despite global and domestic economic challenges, the quality of KUR distribution remains robust, with a non-performing loan (NPL) rate of 2.19%, slightly below the national average of 2.21%. The program has successfully onboarded 2.52 million new debtors this year, exceeding its target.
The meeting was attended by key government officials, including the Minister of Finance and the Minister of MSMEs, highlighting the collaborative effort to enhance Indonesia's economic landscape through the KUR program. With continued stakeholder support, KUR is positioned as a pivotal instrument for economic recovery and sustainable growth in Indonesia.