Airlangga Reveals Government Strategy to Upgrade MSMEs

Coordinating Minister for Economic Affairs Airlangga Hartarto has detailed the government’s strategy to elevate micro, small, and medium enterprises (MSMEs), emphasizing their role as the backbone of the national economy. Speaking at the Festival for the Ease and Protection of Micro Enterprises, Airlangga highlighted that the government continues to facilitate business ease, expand financing access, and drive digital transformation to boost MSME competitiveness.

A key component of this strategy is the People’s Business Credit (KUR) scheme, which has a total allocation of nearly Rp300 trillion. As of late June 2026, the government has disbursed Rp147.70 trillion to 2.32 million debtors, achieving 50.83 percent of the annual target. Airlangga also announced the launch of a new KUR Perumahan scheme with an allocation of Rp50 trillion, aimed at financing home renovations with a ceiling of up to Rp500 million per unit, targeting 100,000 homes.

Beyond financing, Airlangga urged MSMEs to leverage digital technology, including artificial intelligence (AI), for market analysis, identifying new opportunities, and mapping regional potential. He noted that the ASEAN Digital Economy Framework Agreement (DEFA) will further open regional digital markets, supported by interoperable payment systems like QRIS to facilitate cross-border transactions.

Minister for Micro, Small, and Medium Enterprises Maman Abdurrahman added that the government is strengthening services through the integrated digital platform SAPA UMKM. Developed in collaboration with the Ministry of National Development Planning, the super-app serves as a one-stop hub for MSME registration, business capacity development, legal assistance, and access to various government programmes. The festival also featured the awarding of Grade A certificates to 17 business incubators and the mass signing of KUR agreements for 350 MSMEs from seven distributing institutions.