“As of November 15, 2025, disbursement stands at roughly Rp238 trillion (USD 14.25 billion), or 83 percent. This means we still have around 17 percent left to meet the target assigned to us,” he said during a meeting with Commission VII of the House of Representatives (DPR RI) in Jakarta on Monday (Nov. 17).
He noted that 60.7 percent of KUR disbursement has been allocated to the production sector, surpassing the 60 percent target. The ministry is optimistic the allocation will reach 61 percent by December 2025.
Maman also reported that the number of MSME borrowers who have “graduated” to higher financing categories has already exceeded this year’s target of 1.17 million debtors.
“To ensure MSMEs grow and move up the financing ladder, as of November 15, the number of graduating borrowers has exceeded the target, reaching 1,321,830 people, or around 112 percent of our initial target,” he said.
Despite the progress, Maman acknowledged ongoing complaints from MSMEs regarding difficulty accessing KUR, particularly related to collateral requirements and debtor data in the Financial Information Services System (SLIK).
Regarding collateral, he stressed that KUR loans under Rp100 million (approx. USD 5,970) must not require any collateral. However, in practice, some bank officers still ask borrowers to submit copies of vehicle ownership documents (BPKB) or land and building certificates.
“That is purely for verification purposes or as psychological pressure to prevent moral hazard, ensuring borrowers don’t take their loan obligations lightly,” he said.
Even so, the MSME Ministry continues to strictly prohibit such practices in line with existing regulations and is strengthening monitoring and evaluation to prevent further violations.
“Regardless of the situation, the MSME Ministry must comply with the rules. So we will continue monitoring and evaluating to ensure that for loans between Rp1 million (approx. USD 59) and Rp100 million (approx. USD 5,970), no collateral is requested,” Maman Abdurrahman said.
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Translator: Uyu, Azis Kurmala
Editor: Primayanti
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