BRI Affirms No Additional Collateral Required for KUR Loans Up to IDR 100 Million

PT Bank Rakyat Indonesia (Persero) Tbk has affirmed that applications for People’s Business Credit (KUR) with a ceiling of up to IDR 100 million do not require additional collateral, in accordance with government regulations. Antonius Bangun Prasetyo, BRI’s Department Head of Product, stated that the bank has implemented this provision in its KUR distribution and strictly prohibits requesting or accepting additional collateral or physical guarantees for loans up to IDR 100 million. “In implementing KUR up to IDR 100 million, we have prohibited requesting collateral. We must not ask for it, must not accept it, and must not hold it,” Antonius said during a discussion organised by the Ministry of MSMEs in Jakarta on Wednesday. He made the statement in response to reports from micro, small, and medium enterprise (MSME) actors who claimed they were still being asked to provide collateral when applying for KUR below IDR 100 million. He assured that BRI complies with the prevailing regulations and periodically reminds all staff not to request, accept, or retain additional collateral in the distribution of KUR up to IDR 100 million. “We have very frequently reminded our team that they must not accept, must not request, and must not hold collateral,” he said. In addition to internal socialisation, Antonius noted that BRI also conducts regular audits of KUR distribution. He stated that if any collateral is found to be held in financing that does not require additional collateral, the bank will instruct that the collateral be immediately returned to the customer. He stressed that the provision regarding KUR up to IDR 100 million without additional collateral remains in effect and is implemented by BRI as one of the programme’s distributing banks. The government, through Coordinating Minister for Economic Affairs Regulation Number 1 of 2023 concerning Guidelines for the Implementation of People’s Business Credit, stipulates that KUR with a ceiling of up to IDR 100 million does not require additional collateral. The policy aims to expand financing access for MSMEs, particularly micro and small enterprises that do not yet have assets to serve as additional guarantees when obtaining bank credit.