Jakarta. The microcredit program, also known as Kredit Usaha Rakyat or KUR, has created jobs for 11 million people as of October, according to the government.

In the first 10 months of 2025, Indonesia has distributed around Rp 220 trillion ($13.2 billion) in microloans, according to Micro, Small and Medium Enterprises (MSME) MInister Maman Abdurrahman. The ministry has a cap of Rp 300 trillion this year. The loans have gone to over 3.75 million debtors. Maman said that the loan program had been prioritizing MSMEs in the productive sector for a greater economic impact.

Research agency BRIN data showed that each entrepreneur accessing the microloan program had an employee of between two and three workers on average. Having 3.75 million borrowers meant that the financing had employed approximately 11 million people.

"As of Oct. 23, the KUR microloan disbursement to the production sector has reached 60.7 percent, the highest in Indonesian history. We are optimistic that this figure will reach 61-62 percent by the end of the year," Maman was quoted as saying in a press statement.

Maman also revealed the ministry's plans to launch the so-called SAPA UMKM and Kartu Usaha ('Business Cards'). SAPA UMKM is an integrated platform that will connect various government and non-government programs to facilitate and empower MSMEs.

Any enterpreneur registering to SAPA UMKM will get the Kartu Usaha cards. This will enable access to various facilities and incentives that can help boost their productivity. 

The ministry is also hosting a micro-business facilitation and protection festival. As the name suggests, this can provide space for cross-stakeholder collaboration in providing legality and certification to micro-entrepreneurs.

The government is also allocating 30 percent of public infrastructure as commercial areas for MSMEs. To date, 392 public infrastructure units, including airports, terminals, ports, and train stations, have been occupied by approximately 6,400 MSMEs.

Coordinating Minister for Community Empowerment Muhaimin Iskandar said he welcomed these initiatives. He encouraged every ministry, agencies, and sub-national governments to play an active role in designing programs that encourage employment and create growth opportunities for MSMEs. This way, Indonesia can eradicate extreme poverty by 2026, bring down the national poverty rate to 5 percent by 2029.

"Indonesia must stand on its own two feet, relying on its capabilities and independence to create a productive and self-sufficient society," Muhaimin said.

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