Politics · Indonesia · 15 hrs ago
Indonesia to Review Small-Business Loan Program and Expand Digital Integration
Indonesia’s small-business minister Maman Abdurrahman plans a major review of the government’s Kredit Usaha Rakyat, or KUR, loan program.
The program provides credit to small businesses, and the review is intended to improve transparency and how loans are distributed.
The ministry wants banks to connect their KUR systems to Sapa UMKM, a government platform.
Maman said the ministry will question the commitment of any participating bank that refuses to integrate its system.
The government says 65% of the 300 trillion rupiah allocation is now going to production sectors, above levels that had often remained around 57% in previous years.
The review is being stepped up ahead of 2027 so the program can be more transparent and better targeted, though no further timetable was given.
Indonesia’s minister for micro, small and medium enterprises, Maman Abdurrahman, plans a major review of the People’s Business Credit program, known as KUR.
The review aims to improve transparency and ensure the program reaches its intended recipients.
Maman said the ministry would speed up integrating KUR’s delivery system with the Sapa UMKM platform.
He said the ministry would question the commitment of any distributing bank that refused to integrate its system.
The ministry aims to make the program work better in 2027.
- Who
- Maman Abdurrahman, Indonesia’s minister for micro, small and medium enterprises.
- What
- He plans a major review of the KUR small-business loan program and faster integration with the Sapa UMKM platform.
- When
- He announced the plan on November 4, 2026, and said the review was being intensified toward the end of the year.
- Where
- At the Ministry of Micro, Small and Medium Enterprises in South Jakarta.
- Why
- To improve transparency, the quality of loan distribution and the program’s performance in 2027.
This story does not have two clearly opposing sides.
The share of KUR lending directed to productive sectors often remained around 57%, according to Maman.
Maman announced a major review and said the ministry would speed up integration with Sapa UMKM.
The ministry is intensifying the review ahead of the next year’s program.
Maman said the review aims to make the program work better.
- KUR allocation
- Rp 300 trillion
- Productive-sector lending target
- More than 65% of the total allocation
- Previous productive-sector share
- Often around 57%
- Digital platform
- Sapa UMKM
- Review announcement
- November 4, 2026
What people are saying
I will carry out a major audit, monitoring and evaluation of the implementation of our KUR program system. I will ensure the system’s integration into Sapa UMKM is accelerated.
If any of the banks are unwilling, then we will question that. It means there is something going on.
We hope that every year, as the end of the year approaches, we can carry out a major evaluation so that 2027 can be much better. That is our spirit and motivation. One of the aims is transparency.