As of October 2025, the Indonesian government has channelled approximately IDR 217.2 trillion in the Kredit Usaha Rakyat (KUR) scheme, amounting to about 77 percent of the annual target. This strong uptake demonstrates high demand for finance among productive and labour-intensive micro, small, and medium-enterprises (MSMEs). According to the Kementerian Koordinator Bidang Perekonomian data, more than 30 million MSME actors have already accessed KUR, with most of the funds disbursed to sectors such as agriculture, trade, and manufacturing.
In addition to expanding access to financing, the government is directing KUR to support economic equality by targeting regions still recovering from the pandemic. In the final two months of 2025, it plans to disburse an additional ≈ IDR 40 trillion through mass contracts to about 800,000 borrowers, with an average loan of around IDR 50 million. Alongside finance, there is a drive to enhance human capital by focusing on upskilling and reskilling for modern industry needs, including digital agriculture and green manufacturing. These dual pillars—inclusive financing and adaptive workforce development—are seen as fundamental to achieving the long-term ambition of Indonesia’s “Golden 2045” vision, with MSMEs positioned as a central growth engine for the national economy.
