Government Plans to Cut KUR Interest Rate to 5 Percent, OJK Affirms This

The government plans to change the interest rate on Kredit Usaha Rakyat (KUR) to a maximum of 5 percent from the current 6 percent. This is intended to expand financing access for the public and SME actors. In response, the Financial Services Authority (OJK) has affirmed its full support for the policy and will work with the government to formulate it. “Of course, this is very good for supporting our society in obtaining such facilities,” said OJK Commissioner Chairman Friderica Widyasari Dewi when met by the media at the Indonesia Stock Exchange, Jakarta, quoted on Tuesday, 12 May 2026. Friderica, or familiarly known as Kiki, said that her side had discussed this policy in a meeting with Coordinating Minister for the Economy Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, Bank Indonesia Governor Perry Warjiyo, and Danantara Indonesia CEO Rosan Roeslani some time ago. She added that OJK is encouraging state-owned enterprises (SOEs) other than banks that have good credit distribution capacity to also become KUR distributors. Kiki also stated that the latest KUR policy is in line with the strengthening of the Financial Information Service System (SLIK) policy set by OJK. To support the acceleration of the 3 million housing programme, OJK has decided that the information to be displayed in the SLIK report will be credit or financing with a nominal value above Rp1 million, either based on ceiling or outstanding debit for each debtor. Previously, Indonesian President Prabowo Subianto, in a speech at the International Labour Day commemoration at the National Monument (Monas), Jakarta, on Friday (1/5), emphasised that the government will soon disburse KUR with a maximum interest rate of five percent per year to improve the welfare of the small people. “I have instructed the state-owned banks that soon we will disburse KUR at a maximum of 5 percent per year,” said President Prabowo. The President explained that the policy was taken because small communities, including labourers, farmers, and fishermen, often get trapped in very high loan interest rates. According to him, people’s income should not be spent just to pay burdensome loan interest. As a follow-up, the Ministry of Finance is calculating changes to the KUR interest subsidy budget to meet President Prabowo Subianto’s instructions.