Micro Businesses Absorb the Most People's Business Credit

According to data from the Ministry of Finance's Credit Program Information System (SIKP), from the beginning of the year until December 14, 2023, the disbursed loan value of the People's Business Credit (KUR) reached Rp248.1 trillion, with 5.99 million borrowers.

This credit was mostly absorbed by micro businesses.

From January 1 to December 14, 2023, the value of Micro KUR loans reached Rp154.9 trillion, or 62.5% of the total disbursement. The number of borrowers was approximately 3.5 million.

During the same period, the value of Small KUR loans reached Rp84.1 trillion (33.9%), with approximately 342,000 borrowers.

Then, the value of ultra-micro (UMi) financing was Rp9 trillion (3.6%), with approximately 2.1 million borrowers.

There is also the Indonesian Migrant Worker (TKI) KUR scheme, with a loan value of Rp28.8 billion (0.01%) and approximately 1,200 borrowers.

Each scheme has different policies regarding requirements, ceilings, tenors, and interest rates.

Here is an overview based on information gathered from the Ministry of Finance website, the Government Investment Center (PIP), and KUR distributing banks:

Micro KUR

* Disbursed by banks
* Intended for micro businesses
* Loan ceiling between >Rp10 million—Rp100 million
* Loan tenor between 3—5 years
* Interest rate between 6—9% per year

Small KUR

* Disbursed by banks
* Intended for micro/small businesses seeking to expand their business scale
* Loan ceiling between >Rp100 million—Rp500 million
* Loan tenor between 4—5 years
* Interest rate between 6—9% per year

UMi Financing

* Disbursed by non-bank financial institutions (LKBB), one of which is Pegadaian (a state-owned pawn shop)
* Intended for ultra-micro businesses
* Maximum loan ceiling of Rp10 million
* Loan tenor between 1—3 years
* Interest rate of 1.12% per month, may vary according to the installment period

TKI KUR

* Disbursed by banks
* Intended for prospective Indonesian Migrant Workers (TKI)/migrant workers who will work/intern abroad
* Maximum loan ceiling of Rp100 million or adjusted according to the policy of the Ministry of Manpower
* Maximum loan tenor of 3 years or the same as the work contract period
* Interest rate of 6% per year