Indonesia's New KUR Policy: 6% Flat Rate Starting 2026

Background and Rationale

The Indonesian government has been actively seeking ways to boost economic growth, particularly through supporting the development of micro, small, and medium enterprises (UMKM). As part of this effort, the government has announced a significant change in the Kredit Usaha Rakyat (KUR) policy, setting the interest rate at a 6% flat rate ¹

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Source 2

https://keuangan.kontan.co.id/news/ada-risiko-terkait-kur-boleh-diambil-berulang-kali-dengan-bunga-flat-6

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Source 3

https://nasional.kontan.co.id/news/bunga-kur-flat-6-berpotensi-dongkrak-umkm-tapi-risiko-kredit-harus-diantisipasi

starting from 2026. This decision is expected to have a positive impact on UMKM, as it will provide them with more accessible and affordable financing options.

Key Features of the New Policy

The new KUR policy has two main features: a 6% flat interest rate ²

and the removal of the limit on the number of KUR applications ³

Source 3

https://nasional.kontan.co.id/news/bunga-kur-flat-6-berpotensi-dongkrak-umkm-tapi-risiko-kredit-harus-diantisipasi

. The flat interest rate is a significant departure from the previous graduated interest rate system, which increased with each subsequent loan application. This change is expected to make KUR more attractive to UMKM, as they will no longer face increasing interest rates with each new application. Additionally, the removal of the application limit will allow UMKM to access funds more easily, as they will no longer be restricted by the previous limit of four applications for production sectors and two applications for trade sectors.

Expected Impact and Implications

The new KUR policy is expected to have a positive impact on UMKM, as it will provide them with more accessible and affordable financing options. This, in turn, is expected to boost economic growth, as UMKM will be able to expand their businesses and increase their productivity. However, there are also potential risks associated with the new policy, such as the possibility of UMKM becoming too reliant on KUR and not developing the necessary skills to access commercial credit.