Banking Credit Rises, KUR for MBG and 3 Million Houses
The government records that the performance of national banking intermediation remains strong up to 31 March 2026. Banking credit grew 10.42% annually (year-on-year/yoy). The increase in credit debit balances and the number of credit recipients is seen to reflect the ongoing intermediation function amid economic dynamics.
“The government continues to strengthen the role of the financial sector in supporting inclusive and sustainable national economic growth,” said Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto in an official statement on Monday, 20 April 2026.
From a structural perspective, Haryo stated, credit growth is supported by the corporate, commercial, and consumer segments. Corporate credit grew 14.29%, consumer credit 13.97%, and commercial credit 11.11%. On the other hand, micro, small, and medium enterprise (MSME) credit still experienced a limited contraction of 3.57%.
He mentioned that the sustainability of MSME financing is maintained through the strengthening of Kredit Usaha Rakyat (KUR). As of the first quarter of 2026, KUR debit balances were recorded at Rp522 trillion with a growth of 0.21% (yoy).
In addition to KUR, the implementation of Kredit Program Perumahan (KPP) since October 2025 recorded debit balances of Rp15.76 trillion as of 31 March 2026. Overall, government programme credits, which include KUR, KPP, Kredit Usaha Alsintan, and Kredit Industri Padat Karya, grew 3.23% (yoy).
From a risk perspective, the non-performing loan (NPL) ratio for MSMEs reached 4.55% in March 2026. Meanwhile, the NPL for KUR was recorded at 2.16% in January 2026. The government assesses that the guarantee scheme plays a role in maintaining the quality of KUR financing. Guarantee coverage on the KUR portfolio reaches 70%. Guarantee indicators show a claims ratio of 62.8%, non-performing guarantee (NPG) of 2.8%, and recovery rate of 27.8%.
He stated that the government is also implementing post-disaster KUR policies through Ministerial Regulation of the Coordinating Ministry for Economic Affairs Number 2 of 2026. This policy applies to debtors affected by disasters in Aceh, North Sumatra, and West Sumatra.
The scheme includes tenor extensions, grace periods, and additional interest subsidies, making the effective interest rate zero percent in 2026 and three percent in 2027. The government has also relaxed disbursement requirements for new debtors in the affected areas.
As of the first quarter of 2026, KUR disbursements in those three provinces reached Rp6.04 trillion to more than 93,000 debtors. This figure is said to be relatively stable compared to the same period before the disaster. Moving forward, the government is directing KUR to support productive and labour-intensive sectors, including the Makan Bergizi Gratis (MBG) programme and the 3 Million Houses programme, as well as the creation of new entrepreneurs and jobs. The government states that this strengthening of financing runs in parallel with fiscal policies to maintain purchasing power and encourage domestic consumption.