Gov’t to Provide KUR Relaxation for Disaster-Affected Debtors in Three Provinces

Coordinating Minister for Economic Affairs Airlangga Hartarto presents his report during the Plenary Cabinet Meeting, at the State Palace, Monday (12/15) (Photo by: BPMI of Presidential Secretariat/Laily Rachev)

Coordinating Minister for Economic Affairs Airlangga Hartarto presented a report on the impact of the disaster on the distribution of People’s Business Credit (Kredit Usaha Rakyat/KUR), along with proposed relaxation policy for affected debtors in the Provinces of Aceh, North Sumatra, and West Sumatra.

Airlangga reported that total KUR disbursement in the three provinces amounted to Rp43.95 trillion, benefiting 1,018,282 debtors. Of this amount, Rp8.9 trillion in KUR, involving 158,848 debtors, was directly affected by the disaster.

“In total, Mr. President, KUR disbursement in Aceh, North Sumatra, and West Sumatra stands at Rp43.95 trillion, with 1,018,282 debtors. Of this figure, Rp8.9 trillion and 158,848 debtors have been impacted by the disaster,” Coordinating Minister Airlangga stated in his report to President Prabowo Subianto during the Plenary Cabinet Meeting held at the State Palace in Jakarta, Monday (12/15).

In response to the disaster’s impact, Airlangga proposed a policy to waive mandatory payments of principal and interest installments for affected KUR debtors. Under this scheme, lending institutions would continue to receive principal and interest payments without submitting claims, while the Government would bear the interest subsidy or margin subsidy for regular KUR.

“The collectability status remains unchanged as of November 30. Therefore, they are not, so to speak, in default, Mr. President,” Minister Airlangga explained.

In addition to the waiver, the Government is also providing relaxation measures for existing KUR debtors, particularly business operators who are unable to resume operations due to severe damage. During the accelerated recovery phase, the Government is offering additional stimulus measures, including loan tenor extensions, payment grace periods, and interest rate adjustments.

“The grace period will be provided in 2026. The interest or margin rate in 2026 will be set at zero percent for them, Mr. President. Then, in 2027, it will be set at 3 percent before they fully resume,” the Minister said.

Furthermore, the Government is granting administrative relaxation for debtors who lost essential documents due to the disaster. “Administrative relaxation will be provided for six months, Mr. President, as they no longer have their identity cards, tax identification numbers, or business certificates,” Coordinating Minister Airlangga concluded. (BPMI of the Presidential Secretariat) (AY/MUR)