KUR Grows 0.21% and NPL Reaches 4.55%, Airlangga's Office Responds

Amid global dynamics and pressures on the micro-business segment, the Government claims that SME financing continues to run in line with directed and adaptive policies, particularly through the strengthening of People’s Business Credit (KUR). Spokesperson for the Coordinating Ministry for the Economy, Haryo Limanseto, views this as indicating that the contraction occurring is controlled and part of the consolidation process towards a healthier, more productive, and sustainable SME financing structure. Furthermore, KUR serves as the Government’s primary instrument in maintaining SME financing stability and ensuring credit access remains intact amid rising risks in the micro sector. “Up to the first quarter of 2026, KUR continues to show stable performance with positive growth of 0.21% (year-on-year) and outstanding debet reaching Rp522 trillion. This stability affirms KUR’s role as an anchor for SME financing amid economic dynamics,” stated Haryo, quoted on Monday (20/4/2026). In addition, the implementation of the Housing Programme Credit (KPP), which began running since October 2025, also shows good progress with outstanding debet reaching Rp15.76 trillion as of 31 March 2026. Overall, Government programme credits consisting of KUR, KPP, Alsintan Business Credit, and Labour-Intensive Industry Credit grew by 3.23% (year-on-year), demonstrating the Government’s strong commitment to maintaining the continuity of real sector financing. “From the risk side, the Government is monitoring a trend of increasing problematic credit ratios in the SME segment, with the SME credit NPL position reaching 4.55% in March 2026,” he said. Nevertheless, the quality of KUR financing remains well maintained, reflected in the relatively low KUR NPL rate of 2.16 percent in January 2026. This indicates that the KUR policy design, supported by a strong guarantee/insurance system, is able to maintain a balance between expanding financing access and prudent risk management. Haryo revealed findings that guarantees/insurance serve as a solution in SME financing and have been concretely implemented in KUR and KPP policies. The performance of guarantees/insurance in the KUR programme also shows a solid and sustainable condition. With the guarantee/insurance coverage capacity remaining high, reaching 70% of the KUR portfolio, credit guarantee and insurance institutions continue to record good performance. Various guarantee/insurance risk indicators are in a controlled condition, with a claims ratio of 62.8%, Non-performing Guarantee (NPG) of 2.8%, and recovery rate of 27.8%. Haryo stated that the strong guarantee/insurance scheme has proven able to maintain credit quality while encouraging sustainable SME financing expansion.