Government Guarantees No Increase in KUR Interest Rates

Coordinating Minister for Economic Affairs Airlangga Hartarto has guaranteed that the increase in the BI-Rate will not change the interest rate on People’s Business Credit (KUR). “It does not change the KUR provided by the government at 6 percent,” he said in South Jakarta on Monday, 29 June 2026. Airlangga explained that the 6 percent interest rate on the KUR programme is the result of a government subsidy. He noted that the cost of funds borne by banks differs from the benchmark interest rate set by Bank Indonesia. Regarding capital, Airlangga said the government has increased the housing KUR allocation from Rp 36 trillion to Rp 50 trillion. Additionally, the government is expanding the scope of businesses eligible for labour-intensive industry credit. Airlangga expressed hope that this credit would be used not only for investment activities but also for working capital. “So it is hoped that its utilisation can be broader,” he said. Although applications have already been submitted, he noted that the value of labour-intensive credit loans is relatively small, at under Rp 50 billion. Finally, Airlangga addressed the government’s policy of cutting the loan interest rate for the Programme for Fostering Prosperous Family Economies (PNM Mekaar) to 8 percent from the previous double-digit figure. Airlangga said the government is currently waiting for the Ministry of Finance to issue a regulation governing the credit application mechanism managed by PT Permodalan Nasional Madani (PNM). He is targeting the regulation to come into effect this year. “We hope it can be implemented in the coming months,” he said. He stated that the ministerial regulation being drafted will not change the customer criteria. Airlangga confirmed that the loan ceiling remains at Rp 15 million. PNM Mekaar credit is exclusively for women entrepreneurs. Airlangga explained that to realise the interest rate cut, the government is disbursing a budget of Rp 18–25 trillion. With this interest rate subsidy, Airlangga hopes the number of customers will increase. He also hopes that entrepreneurs who obtain capital from PNM Mekaar can upgrade their businesses and switch to using KUR to apply for loans with higher ceilings.