MICROCREDIT AND INFORMAL TRANSPORT WORKERS: EVALUATING THE IMPACT OF KUR ON MOTORCYCLE TAXI DRIVERS’ WELFARE IN COLO VILLAGE, INDONESIA

Abstract

This study explores the impact of the People's Business Credit (Kredit Usaha Rakyat or KUR) on the income levels and financial welfare of motorcycle taxi drivers (ojek) in Colo Village, Kudus Regency. Located in a mountainous area and reliant on ojek for local transportation, the village presents a unique case of informal labor dynamics in rural Indonesia. Using a descriptive approach with data from 30 KUR recipients, the research identifies variations in credit utilization—productive versus consumptive—and their corresponding economic outcomes. Findings indicate that while nearly half of the respondents experienced significant income increases, many others saw little to no financial improvement due to non-strategic credit use and low financial literacy. The study concludes that microcredit alone is insufficient without complementary financial education, flexible repayment models, and entrepreneurial support. These insights inform more inclusive financial policies tailored to the realities of informal sector workers in rural highland communities.