Banking Credit Rises 10.42%, KUR Becomes Support for SMEs
Access to financing for the public remains maintained amid global economic dynamics. As of the end of March 2026, national banking credit grew 10.42% year-on-year (yoy), indicating that the banking intermediation function continues to operate and support economic activities.
This increase is evident from the rise in the outstanding credit balance as well as the number of loan recipients. This condition shows that credit disbursement is not only expanding nominally but also reaching more people.
In terms of disbursement, credit growth is primarily supported by the corporate segment, which rose 14.29%. Consumer credit also grew 13.97%, followed by commercial credit at 11.11%. On the other hand, micro, small, and medium enterprise (MSME) credit is still experiencing a limited contraction of 3.57%.
Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that the weakness in the MSME sector remains under control. The government continues to maintain the sustainability of financing through various policies, particularly the People’s Business Credit (KUR).
“The contraction that occurred is part of the consolidation process towards healthier, more productive, and sustainable MSME financing,” said Haryo in an official statement, quoted on Monday (20/4/2026).
KUR remains the main support for MSME financing. As of the first quarter of 2026, the KUR outstanding balance reached Rp522 trillion with a slight growth of 0.21% (yoy). This figure indicates stability in financing amid increasing risks in the micro sector.
In addition to KUR, the government has also begun accelerating the Housing Programme Credit (KPP). Since its launch in October 2025, the KPP outstanding balance has reached Rp15.76 trillion as of March 2026. Overall, government programme credit grew 3.23% (yoy), covering KUR, KPP, agricultural machinery and equipment credit (alsintan), and labour-intensive industry credit.
In terms of risk, the MSME non-performing loan (NPL) ratio was recorded at 4.55%. However, the quality of KUR is relatively better maintained with an NPL of 2.16%. The government assesses that the credit guarantee scheme plays an important role in maintaining the balance between expansion and risk.
“The KUR design with strong guarantee system support is able to maintain credit quality while encouraging MSME financing expansion,” said Haryo.
The KUR guarantee scheme, for example, is able to cover up to 70% of the portfolio. Several risk indicators are also still under control, such as the claim ratio of 62.8%, non-performing guarantee (NPG) of 2.8%, and recovery rate of 27.8%.