LPDB-KUMKM (Revolving Fund for Cooperatives and SMEs)
Offers Indonesian cooperatives and small businesses concessional revolving loans through a public development agency.
LPDB-KUMKM (Lembaga Pengelola Dana Bergulir Koperasi Usaha Mikro Kecil dan Menengah) is Indonesia's revolving fund manager for cooperatives and micro, small, and medium enterprises, operating as a BLU (Badan Layanan Umum, or Public Service Agency) under the Ministry of Cooperatives. The BLU structure allows LPDB-KUMKM to retain and revolve repaid capital, extending concessional Rupiah-denominated loans on a continuing basis rather than on fixed annual appropriations. It administers loan capital channeled by the Indonesian government toward the cooperative and SME sector and sits within the broader ecosystem of programs designed to increase MSME access to formal finance.
Following President Prabowo Subianto's October 2024 cabinet restructuring, the former unified KemenKopUKM was split into two successor ministries: Kementerian Koperasi (Ministry of Cooperatives), under which LPDB-KUMKM falls, and Kementerian UMKM (Ministry of Micro, Small and Medium Enterprises). LPDB-KUMKM's mandate covers both cooperatives and SMEs registered and operating in Indonesia. Eligible borrowers include for-profit SMEs and cooperative entities; individuals, universities, and research organizations are not eligible. Specific interest rates, loan ceilings, tenor terms, and application procedures were not fully captured in available public sources, and applicants should consult the LPDB-KUMKM BLU directly for current program parameters.
This is a loan instrument, not a grant. The revolving fund model means capital is recycled as prior beneficiaries repay, making the facility an ongoing credit resource rather than a competitive one-time award. Prospective applicants — Indonesian cooperatives and SMEs — should approach LPDB-KUMKM through its official channels, with applications assessed against creditworthiness and program eligibility criteria set by the Ministry of Cooperatives.
Rupiah-denominated concessional revolving loans for Indonesian cooperatives and SMEs, managed by LPDB-KUMKM as a public service agency (BLU) under the Kementerian Koperasi.
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