Optimizing the KUR Program in the Productive Sector Effectively Opens New Job Opportunities
Jakarta – The People’s Business Credit (KUR) program, long a mainstay of the government’s efforts to boost the growth of Micro, Small, and Medium Enterprises (MSMEs), is now showing a more progressive direction. Optimizing KUR distribution to productive sectors, such as agriculture, plantations, and the processed food industry, has proven to have a significant impact, particularly in creating new jobs and strengthening regional economic resilience.
The Deputy for Micro Enterprises at the Ministry of Cooperatives and SMEs, Riza Adha Damanik, revealed that nearly 60% of the total KUR disbursed until June 2025 was given to the productive sector.
“By June 2025, KUR disbursement to the productive sector reached IDR 79.6 trillion, or around 59.97% of the KUR disbursement target,” he said.
According to Riza, this transformation in KUR distribution reflects a strategic shift from the trade sector to the productive sector, which is more capable of creating jobs and providing a sustainable economic impact.
“Thus, economic growth in the second half of this year will be better because MSMEs have increased their credit between January and June 2025,” Riza added.
Regarding financial stability, the Minister of Cooperatives and SMEs, Maman Abdurrahman, expressed confidence that the non-performing loan (NPL) ratio of the People’s Business Credit (KUR) program could be maintained at a safe level. It remains well below the 5% threshold set by Bank Indonesia.
“The NPL ratio is currently around 4%, and we are optimistic that we can keep it below 5% by the end of the year, especially with the projected improvement in the national economy in the second half of 2025,” Maman said.
Meanwhile, PT Bank Rakyat Indonesia (Persero) Tbk (BRI), as one of the main distributors of KUR, has also demonstrated a strong commitment to supporting this program. BRI Corporate Secretary, Agustya Hendy Bernadi, revealed that by the end of May 2025, BRI had distributed Rp 69.8 trillion in KUR, out of this year’s target of Rp 175 trillion.
“Financing through KUR is a concrete manifestation of BRI’s commitment to supporting economic equality and the sustainability of micro-enterprises,” he explained.
According to Hendy, this financial support not only boosts the scale of MSME businesses but also strengthens the economic structure at the regional level.
“We hope that the financing access and assistance provided by BRI will have a multiplier effect, from increasing MSME turnover, creating new jobs, to creating more equitable prosperity,” he concluded.
This strategic move to direct KUR (People’s Business Credit) to the productive sector demonstrates the synergy between the government and financial institutions to make MSMEs the backbone of the national economy. With increasing access to targeted financing, Indonesia is increasingly optimistic about achieving inclusive, resilient, and sustainable economic growth.
