Revision of Presidential Decree on UMKM Changes the Proportion of Business Sectors Receiving KUR

The government is finalizing the preparation of Decree of the President on the Financing Policy Committee (“Policy Committee”) for Micro, Small, and Medium Enterprises (Usaha Mikro, Kecil, dan Menengah - “UMKM”). Deputy for Community Economic Empowerment and Migrant Worker Protection, Coordinating Ministry for Community Empowerment Leontinus Alpha Edison said that the formation of the committee is expected to improve access to productive business financing in a more integrated and targeted manner.

“This is one of the President’s directives for optimizing the distribution of Community Business Credit (Kredit Usaha Rakyat - “KUR”), considering that its authority is divided based on the duties and functions of each Ministry,” Leon told Hukumonline.

It is known that the Policy Committee was established in 2015 as stipulated in Decree of the President No. 14 of 2015 on the Policy Committee for Financing Micro, Small, and Medium Enterprises (“Decree 14/2015”). As of 16 March 2025, the disbursement of KUR reached Rp44.73 trillion to 788,237 borrowers, with approximately Rp26.19 trillion or 58 percent allocated to the production sector.

“The revision is targeted to be completed this year, so that the changes can immediately strengthen support for financing productive sectors,” he added.