The Role of Kredit Usaha Rakyat (KUR) in Improving the Financial Performance and Sustainability of UMKM in Sekadau Regency

Abstract

This study aims to analyze the role of Kredit Usaha Rakyat (KUR) in improving the financial performance and sustainability of Micro, Small, and Medium Enterprises (UMKM) in Sekadau Regency. Using a qualitative method with a descriptive approach, data were collected through in-depth interviews, non-participatory observation, and documentation. The informants consisted of five UMKM actors who are KUR recipients as key informants, and two banking representatives as supporting informants. The results show that KUR plays a significant role in enhancing UMKM financial performance, reflected in increased working capital, turnover, profits, and improved cash flow management. The funds are utilized productively for purchasing raw materials, adding stock, and procuring equipment. Furthermore, KUR contributes to business sustainability by providing capital stability, enabling business expansion, and enhancing competitiveness. However, several obstacles were identified, including limited financial literacy, simple financial recording, fluctuating business income, and administrative challenges in the credit application process. The study concludes that while KUR effectively supports UMKM, its optimal impact requires improved financial management capacity and continuous assistance for business actors. These findings are expected to serve as evaluation material for policymakers and banking institutions, as well as a reflection for UMKM actors in optimizing the utilization of KUR.