Jakarta, ThedailyID — The Indonesian government has allocated Rp394 trillion for affordable lending programs in 2027 to expand public access to financing.
The decision followed a coordination meeting of the People’s Business Credit Policy Committee. Several ministries and institutions attended, including the Coordinating Ministry for Economic Affairs, the Industry Ministry, the MSME Ministry, and the Housing and Settlement Areas Ministry.
The Financial Services Authority (OJK) and Bank Indonesia also participated in the meeting.
“We have set the total allocation for these programs in 2027 at Rp394 trillion,” Coordinating Minister for Economic Affairs Airlangga Hartarto said at his office, according to CNNIndonesia on Wednesday, November 11.
The allocation covers several financing programs:
- People’s Business Credit (KUR): Rp325 trillion
- Agricultural business loans: Rp1.4 trillion
- Labor-intensive business loans: Rp600 billion
- Housing loans: Rp30 trillion
- Prosperous women’s credit program: Rp30 trillion
The KUR allocation will increase to Rp325 trillion in 2027, up from Rp295 trillion this year.
Meanwhile, the meeting also agreed on special credit relief for borrowers affected by earthquakes in East Nusa Tenggara (NTT).
The relief will take the form of loan restructuring, which began implementation this year. OJK has prepared a restructuring scheme that can extend for up to three years.
“OJK has prepared restructuring that can be carried out over three years. Next year, the KUR interest or margin rate in NTT will be zero percent in 2027 and three percent in 2028,” Airlangga said.
The policy is intended to ease repayment obligations for affected borrowers while supporting the recovery of businesses and local economic activity.
