Bandung, West Java, Feb. 24 -- Indonesia's Ministry of Micro, Small, and Medium Enterprises (MSMEs) is targeting to distribute Rp300 trillion (or around US$18.4 billion) in smallholder business credit (KUR) in 2025.

MSME Minister Maman Abdurrahman said that the government has also prepared subsidies to keep KUR interest rates low.

"The total KUR subsidy provided is around Rp48 trillion, so MSME entrepreneurs will only have to pay an interest rate of about six percent instead of the typical 15 percent," he informed after a coordination meeting on KUR distribution here on Monday.

He said that this year, KUR distribution will be carried out by 49 financial institutions, mainly from the banking sector, including state-owned banks (Himbara)...