House Commission VII Urges MSME Ministry to Raise KUR Ceiling to Rp350 Trillion for 2027

Commission VII Chairman Saleh Partaonan Daulay has urged the Ministry of Micro, Small, and Medium Enterprises to advocate for an increased ceiling for the People’s Business Credit programme for 2027. He stated this effort represents a key strategy for the ministry to boost entrepreneurial activity without depending on its own budget allocation from the state budget. He emphasised that this should be a focus alongside requesting additional funding.

"The ministry may not directly hold the money, but it is distributed straight to the people. That is actually the most important thing because it has a significant impact," Saleh said at the parliamentary complex in Jakarta on Thursday. He noted that the current KUR ceiling from banks stands at Rp297 trillion and argued it needs to be raised to Rp350 trillion.

With the additional ceiling, he acknowledged that employment would increase through the creation of new enterprises, especially given the government’s target to foster two million new business operators. "Imagine a person borrowing Rp5 million or Rp3 million so they can sell fried rice, meatballs, or run other small businesses. To support whom? The Indonesian people at home," he said during a meeting with MSME Minister Maman Abdurahman.

He cautioned, however, that bank funds should not flow predominantly to large corporations reaping profits with minimal reciprocal benefit to the country. He noted this is an issue President Prabowo Subianto is already monitoring. "Perhaps we also need to find ways to manage this and communicate further. We will help support the Minister; he will certainly communicate this, but we will assist to ensure this gets increased," he added.