TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto assured that the recent increase in Bank Indonesia’s benchmark interest rate, known as the BI-Rate, will not affect the interest rate for the government’s People’s Business Credit (KUR) program.
"The business credit provided by the government will not change. It remains at 6 percent," Airlangga said in South Jakarta on Monday, June 29, 2026.
KUR Interest Rate Remains at 6 Percent
Airlangga explained that the 6 percent interest rate for KUR is maintained through government subsidies. He said the funding costs borne by banks participating in the program are different from the benchmark interest rate set by Bank Indonesia.
The government, he added, is also expanding access to financing for businesses. The allocation for housing-related KUR has been increased from Rp36 trillion to Rp50 trillion.
Airlangga said the government is also broadening access to credit for labor-intensive industries, with financing expected to support not only investment activities but also working capital needs.
"This means the utilization can become broader," he said.
He noted that while applications for labor-intensive industry loans have increased, the average loan value remains relatively small, generally below Rp50 billion.
PNM Mekaar Loan Interest Cut to 8 Percent
Airlangga also highlighted the government’s plan to reduce the interest rate for loans under the Prosperous Family Economy Building Program (PNM Mekaar) to 8 percent from its previous double-digit rate.
The government is currently waiting for a regulation from the Ministry of Finance that will set out the mechanism for submitting business loans managed by PT Permodalan Nasional Madani (PNM). Airlangga said the regulation is expected to be implemented this year.
"We hope that in the coming months, it can be implemented," he said.
He emphasized that the upcoming regulation will not change the eligibility criteria for PNM Mekaar customers. The maximum loan limit will remain at Rp15 million, and the program will continue to target women entrepreneurs.
Government Prepares Subsidy Budget
Airlangga said the government estimates it will allocate Rp18 trillion to Rp25 trillion in the state budget to support the interest rate reduction.
Through the subsidy, he hopes more customers will be able to access financing. He also expects PNM Mekaar borrowers to gradually improve their businesses and eventually transition to KUR, allowing them to obtain larger-scale loans.
"This is part of efforts to help entrepreneurs move up to a higher level of business financing," Airlangga said.
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