In his remarks at the Pesta Rakyat untuk Indonesia 2025 event in Jakarta on Friday, he noted that the share of KUR disbursement for the production sector as of the first semester of 2025 has reached 60.3 percent.
"Allocating 60 percent of KUR funds for the production sector creates a significant multiplier effect, such as job creation, and has an economic impact," Abdurrahman explained.
The Ministry of MSMEs recorded that as of August 19, 2025, the realization of KUR disbursements has reached Rp169.2 trillion (around US$10.3 billion) or 52.1 percent of the target of Rp300 trillion (around US$18.3 billion) this year, with a total of 2.90 million debtors.
Of the total amount, Rp101.9 trillion (around US$6.2 billion) loans were disbursed to the production sector.
On that occasion, the minister also highlighted the need to pay attention to the quality of KUR disbursements, rather than only focusing on the quantity.
He expressed hope that the share of KUR disbursements for the production this year can increase from 60.3 percent to around 63-65 percent soon.
To strengthen MSMEs, the ministry is also providing facilitation to the business players to get various certificates to support their businesses, such as the Indonesian National Standard (SNI) certificates and those issued by the Food and Drug Supervisory Agency (BPOM).
"For certificate issuance, such as halal and BPOM certificates, thank God, the increase is very significant, reaching above 50 percent to 100 percent on average," he remarked.
KUR was launched by the Indonesian government in 2007 as part of efforts to improve access to financing for MSMEs.
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Translator: Arnidhya Nur, Raka Adji
Editor: Arie Novarina
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