OJK Supports KUR Interest Rate Policy of Maximum 5 Percent to Expand Access

Jakarta (ANTARA) - The Financial Services Authority (OJK) supports the government’s policy to change the interest rate on People’s Business Credit (KUR) to a maximum of 5 percent to expand financing access for the public and small and medium enterprises (SMEs). “Of course, this is very good to support our society in obtaining these facilities,” said OJK Commissioner Chairman Friderica Widyasari Dewi when met by the media at the Indonesia Stock Exchange, Jakarta, on Monday. Friderica, or familiarly known as Kiki, stated 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 conveyed that the latest KUR policy aligns with the strengthening of the Financial Information Service System (SLIK) policy set by OJK. To support the acceleration of the 3 million houses programme, OJK has decided that the information to be displayed in the SLIK report is credit or financing with a nominal value above Rp1 million, either based on the 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 so far small communities, including workers, 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 (Kemenkeu) is calculating changes to the KUR interest subsidy budget to meet President Prabowo Subianto’s directive. As a note, the current KUR interest rate is set at a flat 6 percent. Acting Director General of Budget at the Ministry of Finance Sudarto, in the APBN KiTa April 2026 press conference at the Ministry of Finance office, Jakarta, on Tuesday (5/5), explained that the reduction in the interest subsidy amount will also change the budget allocation. “Currently, the allocation for interest subsidies is Rp36 trillion. The change from 6 percent to 5 percent has been calculated by us. We will soon convey it,” said Sudarto.