Finance Minister to Probe Bank Misapplying KUR

JAKARTA, 4 November 2025 – Finance Minister Purbaya Yudhi Sadewa announced that he will take action against a bank that failed to follow the rules of the People's Business Credit (KUR) scheme. He received a report that a bank demanded collateral from a borrower even though the loan amount did not exceed Rp100 million. Purbaya said an investigation will be carried out together with Committee IV of the Regional Representative Council (DPD).

The KUR program is a government initiative aimed at supporting micro, small and medium enterprises (MSMEs) by providing an interest subsidy of 6 % per year. For loans up to Rp100 million, borrowers are not required to provide collateral. The bank’s demand for collateral is therefore a breach of the regulation, prompting the minister to review implementation and consider suspending the subsidy if it is not properly targeted.

By 17 October 2025, the government had disbursed KUR funds amounting to Rp217.2 trillion to 3.69 million borrowers, with a non‑performing loan (NPL) ratio of 2.28 %. Suspending the interest subsidy could raise financing costs for MSMEs, while stricter enforcement is expected to improve the program’s effectiveness. The minister will coordinate with the Coordinating Ministry for Economic Affairs to follow up on the findings.