Minister Ara Optimistic KUR Housing Programme Can Combat Loan Sharks

Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, commonly known as Ara, has asserted that one of the goals of the People’s Business Credit (KUR) Housing programme is to suppress the practice of loan sharks that often ensnares the public and MSMEs in the country. He noted that the programme’s target, which provides a 5 percent interest subsidy and a financing ceiling of up to IDR 5 billion—revolving up to IDR 20 billion for MSMEs and construction businesses—makes this goal achievable. Furthermore, the KUR Housing programme allows MSMEs to purchase, build, or renovate homes used for business activities, with a 6 percent interest rate and a financing ceiling of up to IDR 500 million. “Thus, with this KUR Housing programme, there should be no more opportunity for loan sharks to thrive in Indonesia,” Ara stated during the refinement of the Financial Information Service System (SLIK) at the Bank Indonesia building in Jakarta. He expressed confidence that through collaboration between the government and various stakeholders, the loan shark problem can be resolved promptly. Ara also encouraged the OJK to implement policies that help the public avoid falling into detrimental loans. Previously, OJK Board of Commissioners Chair Frederica Widyasari Dewi, known as Kiki, confirmed that as of 1 July 2026, financial service institutions are required to update settled credit data in the SLIK within three working days, a significant reduction from the previous timeline of one to one and a half months.