The Ministry of Public Housing and Settlements is preparing to roll out a landmark housing-focused People’s Business Credit (KUR) program worth Rp130 trillion (US$8 billion) by the end of this month.
The housing sector’s inclusion in the KUR scheme has received green lights from both the Coordinating Ministry for Economic Affairs and the Ministry of Finance. The financing support, spearheaded by State investment management agency BPI Danantara, is expected to boost the construction of affordable, decent-quality homes across the country.
“The Rp130 trillion financing support from Danantara brings fresh momentum to the housing ecosystem, encouraging us to work harder and collaborate in building livable, affordable, and quality homes,” Public Housing and Settlements Minister, Maruarar Sirait, said on Thursday, July 3, 2025
According to the Ministry of Cooperatives and SMEs, the total KUR allocation for 2025 stands at Rp287.47 trillion, meaning nearly 45 percent will be channeled to the housing sector. Overall, government-backed credit programs total Rp307.61 trillion, including additional schemes such as agricultural equipment loans worth Rp137.45 billion and labor-intensive industry financing of Rp20 trillion.
The Coordinating Ministry for the Economy reported that as of Thursday, Rp175.46 trillion in KUR has been disbursed to 3.13 million borrowers, leaving Rp112.01 trillion available in state accounts. While there was no specific mention of potential KUR budget adjustments, Maruarar emphasized the strong cross-sectoral support for housing KUR − from state-owned enterprises, Danantara, and even President Prabowo Subianto.
Five major banks have confirmed their participation in the distribution of the housing KUR funds: Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Tabungan Negara (BTN), and Bank Syariah Indonesia (BSI). The announcement followed a closed-door meeting between President Prabowo, Vice President Gibran Rakabuming Raka, and cabinet members during the inauguration of Wisma Danantara Indonesia on Monday, June 30, 2025.
In parallel, the ministry is reviewing the need for foreign loans, including from the Asian Development Bank (ADB), for the Indonesia Green Affordable Housing Program (IGAHP). According to Director General of Governance and Risk Management, Azis Andriansyah, the ministry is prioritizing domestic financing options, particularly through KUR and relaxed Bank Indonesia reserve requirements (GWM).
Danantara, for its part, signaled continued support for housing and food security programs, provided there is backing through public service obligation (PSO) funding. Danantara’s Chief Investment Officer Pandu Sjahrir reaffirmed the institution’s investment criteria, stating that return on investment and commercial viability remain top priorities. He also listed nine priority sectors aligned with Danantara’s founding vision, emphasizing those with significant economic impact.
“What matters most for Danantara is the return on investment and the commercial viability of each initiative,” Pandu said on June 1, 2025.
The housing KUR initiative is expected to play a pivotal role in fulfilling President Prabowo’s vision of building 3 million homes, boosting national welfare and inclusive economic growth.
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