Indonesia expands UMKM financing and cuts marketplace fees to boost micro‑businesses

Bank Indonesia reported that the non‑performing loan ratio for micro, small and medium enterprises (UMKM) rose to 4.68 % in May 2026, while total UMKM credit grew 0.6 % year‑on‑year.

Coordinating Minister for Economic Affairs Airlangga Hartarto announced several measures to ease financing for ultra‑micro entrepreneurs. The interest rate on PNM Mekaar loans will be reduced to 8 % for all borrowers, with a government subsidy lowering rates for roughly 10–15 million customers. He also assured that the subsidised rate for the Kredit Usaha Rakyat (KUR) programme will remain at 6 % despite any increase in the Bank Indonesia rate, and the housing‑focused KUR allocation was raised to Rp50 trillion.

By 28 June 2026, KUR disbursement had reached about 50.8 % of its annual target, amounting to Rp147.7 trillion of the Rp300 trillion goal. The Ministry of UMKM also prepared a permanent 50 % discount on marketplace service fees for verified UMK sellers of domestic products on platforms such as Shopee, Tokopedia, TikTok Shop and Lazada, pending integration with the Sapa UMKM system.

Airlangga Hartarto urged businesses to expand amid global uncertainty, noting a stimulus package of Rp26.34 trillion and strong macro‑economic indicators, including 5.61 % GDP growth in Q1 2026 and inflation around 3 %.