UMKM Minister: Only 19.4 per cent of bank credit disbursed to SMEs
Jakarta (ANTARA) — The Minister of Micro, Small and Medium Enterprises (UMKM) Maman Abdurrahman disclosed that the disbursement of bank credit to the UMKM sector outside the People’s Business Credit (KUR) programme in 2025 has reached only 19.4 per cent of total national credit allocation.
During a media discussion organised by the UMKM Journalists Forum in Jakarta on Friday, Maman stated that of the total bank credit allocation of Rp8.149 trillion in 2025, only approximately Rp1.580 trillion has been disbursed to UMKMs.
This figure falls far short of the 25 per cent target in accordance with the National Medium-Term Development Plan (RPJMN) 2025–2029, which should have reached Rp2.100 trillion.
“The realisation is only 19.4 per cent, meaning there is still around 6 per cent that we have not yet managed to fulfil,” he said.
Meanwhile, Maman noted that Rp6.569 trillion, or 80.6 per cent of the total, flows to approximately 50 large corporations.
The UMKM Minister stressed that the evaluation of credit outside KUR will be a priority to ensure that financing genuinely supports the growth of small and medium enterprises.
He also stated that the government continues to encourage KUR financing as the primary instrument for enhancing the competitiveness of UMKM actors.
In 2026, KUR disbursement is targeted at Rp295 trillion with new debtors reaching 1.37 million.
The realisation of KUR disbursement in 2025 reached Rp270 trillion, with 4.58 million debtors, comprising 2.75 million new debtors and 1.54 million graduation debtors. Of this amount, disbursement to the productive sector reached Rp163.9 trillion.
At the same forum, the Secretary General of the Indonesian UMKM Association (Akumindo) Edy Misero stated that the realisation of KUR disbursement remains far from expectations and has created several problems for UMKM actors in the field.
One reason for the slow absorption is the stringent administrative requirements, particularly regarding collateral, despite government regulations stating that credit below Rp100 million does not require guarantees.
“When the administration and financial reports are in order, but then they ask about the certificate (collateral). So there we have it—the government regulation says 100 million without guarantee, but in the field they still ask for collateral,” said Edy.
Edy also criticised the stance of banks under the Association of State-Owned Banks (Himbara), which he said have not fully provided ease in accordance with regulations. He assessed that accelerating disbursement is more needed than merely low interest rates.