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🇮🇩 Indonesia /Economy & Trade

Indonesian government prepares Rp 300 trillion for micro-enterprise financing

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • The Indonesian government has allocated Rp 300 trillion for micro, small, and medium enterprise (UMKM) financing.
  • President Prabowo Subianto is prioritizing UMKM access to capital through the People's Business Credit (KUR) scheme.
  • As of July 2026, Rp 167 trillion of the allocated funds has been disbursed, with ongoing efforts to facilitate permits and market access for UMKM.

Indonesia's government is making a significant financial commitment to support micro, small, and medium enterprises (UMKM), allocating Rp 300 trillion for financing initiatives. Vice Minister for UMKM, Helvi Yuni Moraza, stated that President Prabowo Subianto places a high priority on facilitating UMKM access to capital, particularly through the People's Business Credit (KUR) scheme.

Because this is what the government has designed, specifically for financing, we have prepared approximately Rp 300 trillion for UMKM financing facilities with the KUR credit scheme.

— Helvi Yuni MorazaExplaining the government's financial commitment to UMKM financing.

"For financing, we have prepared approximately Rp 300 trillion for UMKM financing facilities under the KUR credit scheme," Helvi announced at the Kumitra program opening in Yogyakarta on Friday, July 17, 2026, as reported by Antara.

As of mid-2026, Rp 167 trillion of this substantial budget has already been disbursed to UMKM across the archipelago, representing nearly 60% of the total allocation. Helvi emphasized that continuous efforts, including events like Kumitra and collaborations with state-owned banks (Himbara) and private banks, are crucial to ensure the funds reach their intended recipients effectively.

Update as of July, Rp 167 trillion has been absorbed, meaning it has reached almost 60 percent. This is why we continue to hold activities like this and are also assisted by Himbara (Association of State Banks), national private banks, online activists.

— Helvi Yuni MorazaProviding an update on the disbursement of funds and ongoing outreach efforts.

The government is also focused on streamlining the process for UMKM, including providing free business permit facilitation. This comprehensive approach underscores President Prabowo's commitment to empowering UMKM, not only through financial access but also by opening up market opportunities and reducing bureaucratic hurdles.

And for convenience, we facilitate the processing of permits by providing ease without charging fees, so Mr. Prabowo's attention is very great towards UMKM, including how to open market access.

— Helvi Yuni MorazaHighlighting the government's efforts to simplify permits and improve market access for UMKM.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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