Prabowo Requests 5% KUR Interest Rate, Purbaya's Office Prepares the Subsidy

The Ministry of Finance is preparing the budget allocation for interest subsidies on People’s Business Credit (KUR) following President Prabowo Subianto’s plan to launch KUR with a maximum interest rate of 5%. Acting Director General of Budget at the Ministry of Finance, Sudarto, stated that the policy to change the KUR interest rate will certainly affect the subsidy budget that the government has prepared for this year. As is known, the annual KUR interest rate stands at 6% to date. “Currently, the budget for interest subsidies is Rp36 trillion. The change from 6% to 5% is being calculated, and we will report it soon,” Sudarto emphasised at the Ministry of Finance headquarters in Jakarta on Tuesday (5/5/2026). As is known, the plan to reduce the KUR interest rate from 6% to 5% was conveyed by Prabowo during his speech at the International Labour Day commemoration event at Monas, Central Jakarta, on Friday (1/5). Prabowo claimed to have instructed state-owned banks or Himbara to realise the plan in the near future. “Soon we will disburse credit to the people, maximum 5 percent per year,” Prabowo stated as quoted by CNN Indonesia. According to Prabowo, the KUR interest rate must be lowered because the public is always burdened in accessing financing, as banks impose a heavy interest burden. “So far, small people, if they borrow money, the interest is extraordinarily high. Right? Small people borrowing money can face 70 percent interest per year, right?” he said.