December 22, 2025 | 04:38 pm
TEMPO.CO, Jakarta - Indonesia’s Deputy Minister of Micro, Small, and Medium Enterprises Helvi Yuni Moraza said the waiving of government-backed business loans for enterprises affected by floods in Sumatra will be subject to specific criteria and will not be granted automatically.
Helvi said banks would first assess the track record of Micro, Small, and Medium Enterprises (MSMEs) receiving People’s Business Credit (KUR), Indonesia’s subsidized loan program.
“It is not possible to immediately waive the affected debts,” she said after attending the MSME Expo in Jakarta on Monday, December 22, 2025.
According to Helvi, the banking sector, in coordination with the government, will review borrowers’ repayment histories.
MSMEs with a strong track record may be relocated and assisted in establishing new businesses, allowing them to restart operations after the disaster.
She added that many flood victims in Sumatra are not only borrowers but also part of broader distribution networks, serving as markets for suppliers and distributors rather than solely operating retail outlets. As a result, businesses affected along the supply chain may be eligible for flexibility in their KUR repayment schedules.
“There are stages and criteria that must be followed, as stipulated in government regulations,” she said.
Helvi also noted that the Ministry is currently compiling data on flood-affected businesses in Sumatra. However, detailed information on loan recipients remains with the banking sector.
“That data is held by the banks,” she said.
Meanwhile, in the agricultural sector, President Prabowo Subianto has announced that the Indonesian government will waive KUR debts for farmers in Aceh affected by floods and landslides.
“And then the KUR debts, because this is a natural condition, we will waive them,” Prabowo said during a press briefing while inspecting a Bailey bridge in Teupin Mane, Bireuen Regency, Aceh, on Sunday, December 7, 2025.
Prabowo said the decision was taken because the disaster qualifies as a force majeure event, meaning farmers should not be burdened by concerns over loan repayment.
The president added that efforts to accelerate recovery in flood- and landslide-hit areas are ongoing, including repairs to damaged bridges, which he said are expected to be completed within one to two weeks.
He also acknowledged reports of damaged dams and flooded rice fields, stressing the government’s commitment to rehabilitating agricultural land and maintaining food security. To ensure stable supplies, the government will distribute food reserves from other regions while local production recovers.
“Farmers do not need to worry if their fields are damaged. We will help restore them, that is our priority. In the meantime, while production has not fully resumed, we will send food from other areas. There are still sufficient reserves,” Prabowo said.
Read: Study Finds Online Public Anger Over Deforestation in Sumatra
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