KUR for Migrant Worker Placement Launched, Workers Can Access Up to IDR100 Million
The Indonesian government, through the Ministry of Protection of Indonesian Migrant Workers (P2MI), has launched the People’s Credit Programme (KUR) for Migrant Worker Placement for 2026. This launch represents the government’s effort to provide safe, accessible, and affordable financing for migrant workers abroad.
Minister of P2MI Mukhtarudin emphasised that this programme responds to the financial challenges frequently faced by prospective migrant workers during the pre-placement period. He hopes the KUR will reduce reliance on informal lending practices with high interest rates that burden migrant workers.
Mukhtarudin explained that the 2026 Placement KUR offers favourable interest rates of 6 per cent, significantly lower than commercial rates of 12 per cent. “The government is here to provide financing support with a maximum ceiling of IDR100 million and a tenure of up to three years. These funds can be used to cover training costs, certification, documentation, and departure tickets,” Mukhtarudin stated in a written statement on Thursday (12 March 2026).
Mukhtarudin also highlighted a significant change in budgetary management. Since late December 2025, the authority of the Budget Authority User (KPA) has been transferred from the Ministry of Micro, Small and Medium Enterprises to the Ministry of P2MI. He views this transformation as strengthening the ministry’s mandate in providing comprehensive protection from pre-placement through post-placement stages.
In 2025, the realisation of migrant worker placement reached 296,000 persons, exceeding the initial target of 253,000. This success has directly strengthened the national economy through remittances. Based on Bank Indonesia data, remittances in 2024 reached IDR253 trillion, increasing by 14 per cent in 2025 to IDR288 trillion.
“Remittances sent by migrant workers directly touch family economies in villages, increase public purchasing power, and strengthen the nation’s foreign exchange reserves. This is a genuine contribution to national economic stability,” Mukhtarudin said.
The minister instructed all P2MI ministry units and banking institutions to conduct extensive socialisation immediately, emphasising that information must reach village level. “The programme must not remain at ceremonial level; field communities must know how to access it. All distributing banks must move quickly so that our prospective migrant workers can feel the genuine benefits of this policy,” he explained.
The Director General of Migrant Worker Placement, Ahnas, stated that the 2026 KUR placement distribution target is set at IDR393.5 billion, with a commitment to expand financing reach beyond the apprenticeship programme focus of 2025 to cover all prospective migrant workers.
To achieve this target, the government is partnering with 17 distribution institutions comprising national banks, Islamic banks, and Regional Development Banks (BPD), including Bank Mandiri, BRI, BNI, BSI, Bank BJB, Bank Jateng, Bank Papua, and Bank Sinarmas. The launch was held at the P2MI Jakarta office on Wednesday (11 March), attended by Deputy Minister of P2MI Christina Aryani, P2MI Secretary General Komjend Dwiyono Wibowo, and representatives from the Coordinating Ministry for Economic Affairs and the Ministry of Micro, Small and Medium Enterprises.