JAKARTA, thekabarnews.com—Indonesia’s government has reaffirmed that applications for the Community Business Credit scheme (KUR), worth up to Rp100 million, do not require borrowers to provide additional collateral. In fact, there is no need for any kind of collateral.

The Micro, Small and Medium Enterprises (MSMEs) Ministry also urged business owners to report suspected violations during the KUR application process.

These may include demands for additional collateral, unauthorized charges or the involvement of brokers claiming they can secure loan approval.

Riza Damanik, the ministry’s deputy for entrepreneurship and spokesperson, said applicants should approach official KUR-distributing financial institutions directly.

They do not need an intermediary or have to pay anyone to gain access to the government-backed financing program.

“Under the KUR Implementation Guidelines, KUR loans of up to Rp100 million are not subject to any form of additional collateral, without exception,” Riza said in Jakarta on Wednesday, July 29.

The rule enables micro and small businesses without conventional assets to access affordable working capital and investment financing.

The government’s official KUR policy states that the financed business or project serves as the primary collateral. It also prohibits lenders from deducting any amount from the loan stated in the signed agreement.

The requirement applies to eligible KUR Super Mikro, KUR Mikro and KUR Kecil financing of no more than Rp100 million.

Applicants must still pass the lender’s credit assessment, demonstrate repayment capacity and meet the program’s eligibility requirements.

The clarification comes as KUR remains a major source of financing for Indonesian small businesses.

According to data presented by MSMEs Ministry Secretary Loto Srinaita Ginting, KUR disbursement reached Rp169.07 trillion as of July 22, 2026. Productive sectors received Rp109 trillion, accounting for 64.78 percent of the total. The ministry has set a nationwide KUR disbursement target of Rp295 trillion for 2026. The government will allocate 65 percent of the target to productive businesses.

Under the 2026 policy, KUR Super Mikro carries an effective annual interest rate of 3 percent. Meanwhile, KUR Mikro and KUR Kecil for productive and export-oriented trade sectors carry a 6 percent effective annual rate. This is according to the Coordinating Ministry of Economic Affairs.

Applicants who encounter irregularities should retain application documents, payment requests, messages and the names of the parties involved. The public can submit reports through the Ministry’s SIAP UMKM complaint portal.

Customers can also report complaints involving banks or other financial institutions through the OJK Consumer Protection Portal. You can also call 157 or contact them via WhatsApp at 081-157-157-157.