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JAKARTA – Bank Mandiri has reported a significant milestone in its People’s Business Credit (Kredit Usaha Rakyat/KUR) program, disbursing Rp14.54 trillion by the end of April 2026.
The funds have reached 113,223 micro, small, and medium enterprises (MSMEs) across Indonesia, marking 35.45 percent of the bank’s annual target of Rp41 trillion.
The achievement underscores the institution’s role as a key driver of inclusive economic growth, particularly in strengthening the productive sector.
According to the bank, 63.07 percent of the total disbursement or Rp9.16 trillion was allocated to productive industries, with agriculture taking the largest share at Rp4.69 trillion.
This focus reflects the government’s priority on food security and rural development, positioning MSMEs as vital contributors to national resilience.
Sectoral Breakdown
Beyond agriculture, Bank Mandiri directed Rp3.16 trillion to production services and Rp1.1 trillion to the manufacturing and processing industry.
The emphasis on these sectors highlights the bank’s strategy of supporting enterprises that generate employment, add value to raw materials, and sustain long-term economic growth.
The bank also reported that its KUR portfolio remains healthy, with a non-performing loan (NPL) ratio of just 1 percent.
This figure is well below the industry threshold, signaling strong repayment capacity among borrowers and effective risk management practices.
Long-Term Commitment
Since the inception of the KUR program in 2008, Bank Mandiri has cumulatively disbursed Rp317.78 trillion to 3.7 million borrowers.
This long term commitment reflects the institution’s central role in advancing financial inclusion and supporting the government’s agenda of empowering MSMEs.
To enhance impact, Bank Mandiri is adopting an ecosystem based financing model.
This closed-loop approach integrates MSMEs into broader supply chains, connecting them with distributors, wholesalers, and off-takers.
By embedding small businesses into structured ecosystems, the bank aims to reduce market risks and ensure sustainable income streams for borrowers.
Digital Integration
The expansion of the Mandiri Agen network and digital literacy programs further strengthens the bank’s outreach.
By leveraging technology, Bank Mandiri seeks to improve access to financial services in remote areas, reduce transaction costs, and promote efficiency in loan distribution.
Digital integration also aligns with Indonesia’s broader push toward financial inclusion, ensuring that MSMEs often operating in rural or underserved regions can participate in the formal economy.
Economic Significance
The KUR program has become a cornerstone of Indonesia’s economic policy, designed to empower small businesses, create jobs, and stabilize household incomes.
Bank Mandiri’s performance in 2026 demonstrates how targeted credit allocation can reinforce food security, support industrial growth, and contribute to macroeconomic stability.
However, challenges remain. Heavy reliance on agriculture exposes the portfolio to climate risks, while the digital literacy gap could hinder full participation in the ecosystem-based model.
Addressing these issues will be critical to sustaining the program’s success.
Bank Mandiri’s Rp14.54 trillion KUR disbursement by April 2026 reflects both progress and ambition.
With more than a third of its annual target already achieved, the bank is well-positioned to meet its Rp41 trillion goal.
More importantly, its strategic focus on productive sectors and ecosystem financing signals a long-term vision empowering MSMEs not just as borrowers, but as integral players in Indonesia’s economic transformation.
