The Indonesian Financial Services Authority (OJK) believes that the\nmicroloan program with a maximum interest rate of 5%, proposed by\nPresident Prabowo Subianto, can be a positive step to expand access to\nfinance for the community, especially low-income groups and those\npreviously unbanked.<\/p>\n
In his speech during the International Workers\u2019 Day celebration,\nPresident Prabowo stated that he had asked state-owned banks to provide\na microloan program with a maximum interest rate of 5% and a one-year\ntenor.<\/p>\n
The policy is considered part of an effort to encourage community\neconomic activity through more affordable financing access.<\/p>\n
\u201cThe Microloan Program initiated by the Government is considered very\ngood, it can be utilized by banks as a sustainable business opportunity\nso that the community, especially low-income people and those previously\nunbanked, can continuously benefit from it,\u201d said Dian in a written\nresponse to the Monthly Board of Commissioners Meeting (RDKB) of the\nOJK, Sunday (17\/5\/2026).<\/p>\n
According to her, the program is not only seen as a mere financing\nassistance policy but also as a long-term business opportunity for the\nbanking industry if managed carefully and sustainably.<\/p>\n
Dian emphasized the importance of strengthening governance and risk\nmanagement by banks in implementing the program.<\/p>\n
The statement indicates that the OJK sees the success of the\nmicroloan program depending not only on low interest rates but also on\nthe bank\u2019s ability to maintain the quality of financing and their\nbusiness resilience.<\/p>\n
The low-interest loan program is also considered to be able to open\nup wider access to finance for people who have not yet been reached by\nformal financial services. The unbanked group is one of the main targets\nin this program.<\/p>\n
In the midst of encouraging the distribution of cheap credit, one of\nthe main concerns is the potential increase in non-performing loans\n(NPL). The low-interest loan program targeting communities that were\npreviously not reachable by banking services is considered to have its\nown risks to the quality of bank assets. To anticipate this risk, the\nOJK asked banks to strengthen internal supervision and conduct stress\ntests periodically.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-microloans-with-5-interest-rate-must-remain-sustainable-1780669276", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }