Indonesia has a persistent financing problem in its migrant worker sector. Many prospective workers
cannot cover pre-departure costs and turn to informal or high-cost lenders, increasing exposure to
over-indebtedness at the most financially vulnerable stage of the migration process.
In response, KP2MI formally launched the KUR PMI (Kredit Usaha Rakyat for Migrant Workers) on 29
August 2025 as a government-subsidized credit scheme. Minister Abdul Kadir Karding stated at the
launch that the program resulted from coordination between KP2MI, the Coordinating Ministry for
Economic Affairs, and the Ministry of Finance. The scheme offers loans of up to IDR 100 million per
applicant at 6 percent annual interest, subsidized by the government, without collateral requirement.
The primary eligibility condition is a verified employment contract.
The scheme is disbursed in stages aligned with the applicant’s progress through the placement
process, removing the need for upfront personal capital. It covers placement costs including airfare,
health checks, documentation, training, and certification. By February 2026, the bank network had
reached 17 institutions with a combined ceiling of IDR 331 billion, scheduled for simultaneous national
launch in March 2026.
The contract-first eligibility requirement remains a structural constraint. For workers pursuing high-cost
destinations such as Japan, where certification and language training costs precede contract
issuance, the KUR PMI ceiling does not cover the pre-contract investment phase. This gap is
particularly acute for SMK Go Global participants who need financing before they have a verified job
offer.
