JAKARTA – Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman said that disbursement of People’s Business Credit or Kredit Usaha Rakyat (KUR) loans to the micro segment has reached around IDR 70 trillion.

The figure accounts for 72.9% of total realised disbursement, which has reached IDR 96 trillion as of May 3, 2026.

“About IDR 70 trillion has been channelled to micro enterprises,” Maman said in an official statement on Tuesday (5/5).

He explained that financing for micro businesses is a key government instrument in accelerating extreme poverty reduction, given that most micro entrepreneurs come from low-income groups and operate in the informal sector.

The Indonesian government, he added, continues to strengthen the role of micro and small enterprises as a driver of poverty alleviation through various policies, including KUR distribution targeting households in deciles 1 to 4 — the poor and near-poor segments.

Beyond expanding access to financing, Maman noted that the government is also encouraging the use of public facilities owned by the state, private sector and state-owned enterprises as productive business spaces for MSMEs and the creative economy.

He said this approach is expected to foster a more collaborative business ecosystem while creating new job opportunities, particularly for younger generations.

Maman previously attended a ministerial coordination meeting led by Coordinating Minister for Community Empowerment Muhaimin Iskandar, alongside Creative Economy Minister Teuku Rifky Harsya in Jakarta on Monday (5/4).

The meeting discussed follow-up measures related to Presidential Instruction No. 8/2025 on extreme poverty alleviation, focusing on strengthening MSMEs and the creative economy.

The government views both sectors as crucial for job creation and for fostering new entrepreneurs across regions.

Muhaimin is targeting at least 10 million people to be absorbed into formal employment or entrepreneurship by 2029.

“This is a shared responsibility to ensure the target of eliminating extreme poverty by 2026 and reducing overall poverty to a maximum of 5% by 2029 can be achieved,” he said. (DK/KR/ZH)