Indonesia Expands Non-KUR Financing Access for Micro Businesses

RRI.CO.ID, Cianjur - Indonesia’s Ministry of Micro, Small, and Medium Enterprises is expanding the use of Land Rights Certificates (SHAT) as an instrument to help micro-business owners access alternative financing beyond the government’s People’s Business Credit (KUR) scheme. Based on the release received by RRI Voice of Indonesia in Jakarta on Friday, October 2, 2026, in cooperation with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, the ministry is encouraging entrepreneurs to use legally certified land assets more productively, including as collateral for financing.

The initiative was strengthened through the Access to Capital Locomotive (LokaModal) program held in Cianjur, West Java, on Tuesday (September 29, 2026). The program is part of the government’s 2026 Non-KUR Financing agenda, which targets 1,300 micro-business owners at five locations across Indonesia.

Acting Deputy for Micro Enterprises at the Ministry of Micro, Small, and Medium Enterprises Reghi Perdana said LokaModal was designed to expand financing options based on the characteristics and needs of individual businesses. “LokaModal is our effort to expand non-KUR financing for micro-business owners while encouraging them to utilize their assets to support access to financing,” Reghi said.

The ministry said Cianjur has significant demand for financing among micro, small, and medium enterprises. As of September 25, 2026, KUR distribution in West Java had reached 25.65 trillion rupiah for 443,501 debtors, while Cianjur recorded 883.8 billion rupiah in KUR financing for 17,896 MSMEs.

Reghi said the scale of financing needs shows that business capital support cannot rely on a single financing scheme. The Ministry of MSMEs and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency are therefore expanding the use of SHAT as one instrument to support access to non-KUR financing according to business scale and needs.

Micro-business owners who meet the requirements are encouraged to certify their land assets to obtain legal certainty over ownership while creating opportunities to use those assets to support business financing. Applications for SHAT facilitation can be submitted through local Cooperatives and MSME Offices, followed by verification and assistance before eligible applicants are recommended for further processing by the relevant ministries.

LokaModal also brings together the central and local governments, banks, and non-bank financial institutions to provide broader financing options for MSMEs. Participants receive information on business mapping and validation, business matching, asset legalization through SHAT, and financial literacy from the Financial Services Authority, while institutions including BRI, Bank Syariah Indonesia, Bank BJB, PNM, and Pegadaian provide financing information and consultations.

The government expects the collaboration to create a more inclusive, accessible, productive, and sustainable financing ecosystem for micro-businesses. Ministry of MSME expert Faisal Anwar said financing should be organized as an integrated ecosystem because MSMEs have different needs and stages of development, with success measured not only by the amount of credit distributed but also by business growth, production capacity, employment, and the ability of businesses to move to a higher level.