Government Boosts KUR Relief for Disaster-Affected UMKM

Additional Budget Allocation for 2026-2027

The Indonesian government has announced a significant support measure for UMKM affected by natural disasters in Sumatra through the Kredit Usaha Rakyat (KUR) program. Vice Finance Minister Suahasil Nazara revealed that an additional Rp2.14 trillion will be allocated in the 2026 and 2027 budgets to provide relief to affected debtors ¹

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Current KUR Disbursement Status

As of November 2025, the government has made substantial progress in KUR subsidy disbursements. The Ministry of Finance has disbursed Rp26 trillion in interest subsidies, representing 67.9% of the Rp38.28 trillion allocated for 2025 ²

. This financial support has been crucial in maintaining the liquidity of UMKM through the KUR program.

Growing KUR Distribution

The overall KUR distribution has shown positive growth, with Rp250.8 trillion disbursed by November 2025. This figure represents 87.7% of the Rp287 trillion target set for 2025 ²

, demonstrating the program's expanding reach and importance in supporting UMKM across the country.

Policy Rationale

The government's decision to provide additional relief comes as a follow-up to the President's directive to maintain business continuity for UMKM affected by disasters. The KUR relaxation is expected to ease financial burdens on these businesses, enabling them to recover and continue operations despite the challenges posed by natural disasters.