Jakarta, Jan. 9 -- The government plans to waive interest on its subsidized microcredit program, People's Business Credit (KUR), for micro, small, and medium enterprises (MSMEs) affected by disasters in Aceh, North Sumatra, and West Sumatra in 2026.

The KUR interest rate will be gradually increased to 3 percent in 2027 before returning to the normal rate of 6 percent in 2028.

"For the first year in 2026, we are setting the interest rate at zero. It will increase to 3 percent in 2027 and return to 6 percent in 2028," Coordinating Minister for Economic Affairs Airlangga Hartarto said in Jakarta on Friday.

In addition to the interest rate adjustment, he said the government is also considering special policies tailored to disaster-affected...