Government Helps Millions of MSME Entrepreneurs Provide National Economic Stimulus
By: Dhita Karuniawati
The Prabowo-Gibran government pays very high attention to improving the national economic sector in the Asta Cita Program, including for MSME entrepreneurs. In this case, the third Asta Cita is to increase quality employment, encourage entrepreneurship, and also the sixth Asta Cita especially in terms of encouraging economic equality and poverty eradication. Referring to supporting the program, the government helps MSME entrepreneurs by providing loans for business capital. This government commitment is supported by various parties, especially in the banking sector.
PT Bank Rakyat Indonesia Tbk (BRI) distributed People’s Business Credit (KUR) loans in 2024 amounting to IDR 184.98 trillion. This makes BRI the bank with the largest KUR distribution compared to other national banks. In 2025, BRI will again distribute KUR. BRI’s efforts are in line with the Asta Cita of the Indonesian President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s administration which has reached 100 working days.
BRI’s KUR distribution reaches more than 4 million debtors or MSME actors throughout Indonesia. This has a significant impact on national economic growth. The success of BRI’s KUR distribution is also followed by its maintained credit quality.
BRI’s President Director, Sunarso said that BRI’s KUR management strategy has succeeded in maintaining a healthy Non-Performing Loan (NPL) level, which is at 2%. This shows good risk management in distributing credit to the MSME segment.
According to Sunarso, the NPL level of 3% in credit in the MSME segment is still considered ideal, considering that the characteristics of this segment are different from corporate credit. In the early stages (front-end), the focus is on reaching as many new customers as possible without a selection process that is too strict.
Furthermore, maintenance is carried out in the mid-end stage. In the event of bad debt, the back-end stage plays a role in managing risk, including collection manifested in the recovery rate to maintain credit quality. This strategy allows BRI to continue to support the growth of MSMEs while maintaining the health of the credit portfolio.
For 2025, the government has set a target for KUR distribution of up to a maximum of IDR 300 trillion by considering the adequacy of the KUR interest subsidy/margin subsidy budget for the 2025 Fiscal Year.
BRI is one of the government banks that distributes many KURs. BRI has various types of KUR in 2025, namely Micro KUR, Small KUR, and TKI KUR. KUR distribution is aimed at customers who have never received a loan from a bank.
The three KURs all set an interest rate of 6% per year. However, each KUR has a different loan ceiling. In Micro KUR, each debtor can apply for a maximum loan of IDR 50 million. Meanwhile, Small KUR can get loans ranging from IDR 50 million to IDR 500 million. Specifically for TKI KUR, BRI will provide funds for the departure of prospective Indonesian migrant workers (TKI) to the placement country with a ceiling of IDR 25 million. The placement areas for TKI include Singapore, Hong Kong, Taiwan, Brunei, Japan, South Korea, and Malaysia.
Meanwhile, the Riau Islands Provincial Government (Pemprov Kepri) in collaboration with Bank Riau Kepri Syariah (BRKS) is presenting an interest-free capital loan program for Micro, Small, and Medium Enterprises (MSMEs). This program is supported by a budget allocation of IDR 1.2 billion from the 2025 APBD to ensure its sustainability.
Head of the Cooperatives and MSMEs Service of the Kepri Provincial Government, Rionaldo, said that the budget could increase if the absorption of interest-free capital loans by MSMEs continues to increase. If necessary, the additional budget will be adjusted through the 2025 Revised APBD.
This program offers business capital loans of up to IDR 40 million per MSME actor without interest. Bank Riau Kepri Syariah is tasked with distributing loan funds, while the interest is borne by the Kepri Provincial Government. This scheme has been running since 2021 and has helped 1,400 MSMEs with a total fund distribution of IDR 30 billion.
The Riau Islands Provincial Government is targeting an additional 200 MSMEs to take advantage of this program in 2025. The program evaluation shows a high success rate, with only 0.1% cases of defaulted payments. The causative factors include borrowers who have died or business fluctuations, but installments are still paid off until they are completed. Prospective borrowers must go through a strict verification and validation process by BRKS to ensure that funds are used according to business needs.
The Cooperatives and MSMEs Service together with BRKS also provides assistance and coaching to MSMEs. The focus is on increasing business volume, marketing, digitalization, and participation in exhibitions and bazaars.
