Indonesia to allocate 17.8 bln USD in agricultural microcredit in 2026

JAKARTA, Jan. 13 (Xinhua) -- Indonesia will allocate up to 300 trillion rupiahs (about 17.8 billion U.S. dollars) under its microcredit program, known as Kredit Usaha Rakyat (KUR), for the agricultural sector in 2026, aiming to strengthen national food security, a senior minister said here Tuesday.

Speaking at the Road to Jakarta Food Security Summit, Coordinating Minister for Economic Affairs Airlangga Hartarto said the disbursement of agricultural KUR reached 102 trillion rupiahs in 2025, adding that the financing ceiling could be raised further as long as the funds are used for productive activities and support national food production.

He noted that Indonesia's food security improved in 2025, underpinned by rice production of 34.71 million tons and corn output of around 16 million tons.

The government seeks to broaden farmers' access to financing, maintain rice self-sufficiency, stabilize prices, and improve farmers' welfare through more adaptive credit policies, Airlangga said. ■