The government is preparing to launch three new initiatives under its subsidized microcredit program (KUR), aiming to benefit housing developers, sugarcane farmers, and migrant workers, reports The Jakarta Post.
Coordinating Minister for Economic Affairs Airlangga Hartarto announced on Thursday that the housing-focused KUR scheme will offer loans of up to Rp 5 billion to contractors or developers classified as micro, small, and medium enterprises (MSMEs). The funds will support the construction of type-36 housing units over a period of four to five years.
Alongside this, individuals will also be eligible for loans to renovate homes—especially when those improvements are linked to business use.
To support the rollout, the government has earmarked Rp 13 trillion for renovation loans and Rp 117 trillion for housing development. The funds will be distributed by state-owned banks and selected private financial institutions, with a 5 percent interest subsidy to be applied.
“The program is likely to begin once the necessary regulations are issued by the Ministry of Public Housing and Settlements,” Airlangga said, as reported by Antara. “We are hoping to start this month.”
Earlier, on June 17, Housing Minister Maruarar “Ara” Sirait shared that the government plans to disburse Rp 130 trillion (around US$7.98 billion) in loans through the KUR program, using funds from the state asset manager Danantara. This initiative is seen as key to achieving President Prabowo Subianto’s goal of building 3 million homes.
