What happened
KUR lending to Bali's farmers reached Rp 1.93 trillion in August 2026. KUR, or Kredit Usaha Rakyat, is a state-subsidised credit scheme for small Indonesian businesses. The figure is 24% higher than a year earlier, according to Supendi, head of the Bali regional office of DJPb, the Finance Ministry's treasury directorate, speaking in Denpasar on Monday.
The number of farm borrowers rose 7.23% to 27,112. Lending is growing much faster than the borrower count, which means the average loan per farmer has increased.
The treasury says the growth in lending is helping farmers expand production.
Where the money went
Buleleng, the large regency on Bali's north coast, received the most: Rp 433.90 billion, or 22.50% of the total, spread across 7,756 borrowers.
Highland Bangli came second with Rp 416.21 billion, or 21.58%, for 5,409 borrowers. Tabanan, often called Bali's rice bowl, was third with Rp 330.88 billion, or 17.16%, for 4,315 borrowers. Together the three accounted for about 61% of all farm KUR on the island.
Bali has eight regencies plus the city of Denpasar. The split confirms that the island's farm economy sits largely outside the tourist south.
Fishers are borrowing more too
KUR lending to fisheries grew 30.68% to Rp 45.50 billion, shared among 570 borrowers.
Karangasem in the east leads with Rp 11.98 billion, or 26.29% of the fisheries total. Buleleng follows with Rp 8.93 billion (19.63%) and Bangli with Rp 6.90 billion (15.16%). The amounts are a fraction of farm lending but are growing faster.
How the subsidy works
The government pays part of the interest on KUR from the APBN, the state budget. That puts credit within reach of farmers, fishers, livestock keepers and aquaculture producers who could not otherwise afford it.
The current KUR rate is 6%, with loans issued through banks and other financial institutions. Without the subsidy, these borrowers would face commercial rates averaging around 14%. The government has said it intends to lower the KUR rate to 5% a year, though this remains a stated plan rather than a decision.
DJPb says borrowers use the money for raw materials and production inputs, to expand capacity and to buy equipment. For national context, the Ministry of Micro, Small and Medium Enterprises reports that KUR lending across Indonesia reached Rp 219.62 trillion by mid-September 2026, or 75.7%.
Context: why Bali needs farm credit
Bali's economy leans heavily on tourism, and the pandemic exposed how fragile that can be. Provincial leaders have long called for agriculture and fisheries to play a larger role.
Cheap credit lets a farmer buy fertiliser, seed, feed or equipment without turning to moneylenders or expensive loans. Lending growing by 24% while borrower numbers rise by 7% shows farmers are taking larger loans, not just that new people are joining the scheme.
Why it matters for the villa market
Rice terraces, gardens and farms make up the landscape that draws tourists to Bali and sells villas in Ubud, Tabanan and the north. Rising farm credit suggests agriculture remains a working economy, not just a backdrop.
For villa owners, that cuts both ways. Active fields next to a property are more likely to stay fields, which protects the view. But a plot close to farmland can also sit inside a zone where building is not allowed.
There is a practical side as well. Local farms supply the island's restaurants, villas and hotels. A healthy farm sector in the north and centre of Bali supports that chain, although the source draws no direct link to food prices.