Indonesia Sets 0% Business Loan Rate for Quake-Hit NTT in 2027
Indonesia will set interest on its People’s Business Credit loans at 0% in 2027 for borrowers affected by an earthquake in eight districts of East Nusa Tenggara, before raising the rate to 3% in 2028.
JAKARTA, Nov. 11, 2026 — Indonesia will suspend interest on government-backed small-business loans for borrowers affected by an earthquake in East Nusa Tenggara in 2027, offering a year of relief before rates rise to 3% in 2028.
Coordinating Economic Affairs Minister Airlangga Hartarto said the zero-interest measure would cover borrowers in eight affected districts. The policy is intended to ease financial pressure on businesses as communities recover from the disaster.
Relief will run for one year
The loans are part of Indonesia’s People’s Business Credit program, known as KUR, which provides financing to businesses. The government’s plan sets the interest margin at 0% throughout 2027, followed by a 3% rate in 2028 for affected borrowers.
“The interest margin next year for KUR in East Nusa Tenggara will be 0% in 2027,” Airlangga said at the Coordinating Ministry for Economic Affairs office on Wednesday.
The measure applies to borrowers whose businesses were affected by the earthquake in East Nusa Tenggara, a province in eastern Indonesia. It is not a nationwide change for all KUR recipients.
Two-stage rate plan for affected businesses
With interest set at zero for 2027, eligible borrowers will face lower loan costs during that period. The scheduled return to a 3% rate in 2028 gives borrowers an initial indication of how financing terms will change after the relief year ends.
The government has linked the rate reduction to economic recovery in the affected communities. Its announcement specifies the geographic scope, the one-year zero-interest period and the subsequent 3% rate, but does not provide further details on implementation.
