The Indonesian government has launched two key initiatives to invigorate sugarcane farming productivity and improve the well-being of farmers: the Kredit Usaha Alsintan (Agricultural Machinery Credit) and a relaxed KUR (People’s Business Credit) specifically tailored for smallholder sugarcane farmers. These initiatives, formalised via Coordinating Ministry regulations No. 6 and No. 12 of 2025, respectively, are part of a larger strategy to modernise agricultural tools and facilitate access to financing. The goal is to accelerate the nation's self-sufficiency in staple commodities and enhance farmers’ livelihoods, even on limited land.
In addition, the government has introduced various relaxations in the KUR scheme to make credit more accessible: less stringent collateral requirements, eligibility for first-time borrowers, tiered interest/margin rates, eased restrictions on repeated access, and greater flexibility in minimum duration for productive businesses. Though the total budget for Alsintan Credit in 2025 is around IDR 198.4 billion, disbursement has reached only about IDR 31.7 billion so far—indicating both a gap and an opportunity for further mobilisation of funds to support the agricultural sector
