Legal Analysis of Small Business Credit (KUR) Regulations in Supporting MSME Growth in Indonesia

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economic development but continue to face significant barriers in accessing adequate financing. The People’s Business Credit (KUR) program is a government initiative designed to bridge this financing gap by providing loans to feasible yet non-bankable enterprises. This study aims to analyze the legal development of KUR regulations and evaluate the role of government and financial institutions in supporting the program’s implementation. Employing an empirical juridical approach with a qualitative method, the data were obtained through literature review and field research in West Manggarai, East Nusa Tenggara. Findings reveal that the latest regulation, Coordinating Minister Regulation No. 1 of 2023, strengthens KUR through increased loan ceilings, subsidized interest rates, and digitized processes. However, challenges persist in distribution oversight and the institutional readiness of lenders. Legal certainty remains a crucial factor in ensuring the success of KUR as an inclusive financing tool. Strengthening the synergy between policy and field implementation is essential to ensure KUR effectively supports equitable and sustainable MSME growth.