Government pledges expanded KUR financing access for Indonesia's laundry sector
The Ministry of MSMEs commits to facilitating laundry businesses' access to People's Business Credit loans, responding to industry calls for financing support as the sector experiences robust growth across the archipelago.
Government pledges expanded KUR financing access for Indonesia's laundry sector
The Ministry of Micro, Small, and Medium Enterprises has committed to broadening access to People's Business Credit (KUR) loans for Indonesian laundry businesses, responding to industry appeals for financing support to fuel expansion and development.
MSME Minister Maman Abdurrahman announced the initiative at the Indonesian Laundry Association's 11th anniversary celebration in Jakarta on Sunday, September 13. The association, which represents 2,935 active members across Indonesia's laundry ecosystem, has been calling for government assistance to secure growth capital.
"We will facilitate the association in connecting with banks participating in the KUR program. Our team will promptly follow this up together with the association," Abdurrahman stated at the event.
The KUR program, launched in 2007 as a flagship initiative to enhance MSMEs' access to finance, has evolved into one of the world's largest public support programs for small businesses. The scheme provides financing for working capital and investment to businesses with productive and viable operations that lack sufficient collateral, with loans ranging from Rp10 million to Rp500 million depending on the KUR type.
Under the current framework, the program offers five categories: Super Micro, Micro, Small, Special (clustered/offtaker), and PMI (Indonesian Migrant Workers), with priority given to productive sectors. The government maintains the interest rate at 6 percent per year through subsidies, despite Bank Indonesia's benchmark rate standing at 4.75 percent.
Growing market presents opportunities
The minister's announcement comes as Indonesia's laundry industry demonstrates significant expansion potential. The coin-operated commercial laundry market was valued at USD 123 million in 2025 and is projected to grow at a compound annual growth rate of 10.83 percent to reach USD 228 million by 2031. Meanwhile, the online laundry services segment is expected to surge from USD 1,100 million in 2025 to USD 3,351 million by 2032, driven by digital bookings, pickup delivery services, and urbanization.
Abdurrahman emphasized that expanding financing access has become increasingly critical as the laundry business continues to grow across various regions. However, he stressed that financial support must be coupled with efforts by MSMEs to strengthen their business management and development capabilities to ensure long-term sustainability.
The minister highlighted the importance of market intelligence, encouraging laundry businesses to identify regions where markets are already saturated to avoid excessive concentration. "By doing so, laundry businesses can better adjust their development strategies to regional market conditions and avoid counterproductive expansion," he explained.
Broader MSME empowerment strategy
The Ministry of MSMEs, established on October 21, 2024, under President Prabowo Subianto's administration, is positioning the laundry sector initiative within its broader MSME empowerment agenda. Abdurrahman underscored the need to create a supportive business environment for laundry enterprises to thrive sustainably.
New implementation rules under Regulation 1/2026, effective January 2, 2026, have reorganized the KUR disbursement mechanism to expand access to financing and enhance data reliability through electronic systems. These reforms are designed to make the program more accessible to diverse business sectors, including service industries like laundries.
The minister said his ministry would take note of aspirations raised by the Indonesian Laundry Association and coordinate with relevant institutions to address them. He reaffirmed the Ministry of MSMEs' commitment to providing assistance and support to micro, small, and medium enterprises nationwide to promote sustainable business growth and development across all sectors.