IDR 1,200 Trillion Low-Interest Credit for MSMEs: Minister Maman States Formula is Being Prepared with Danantara
The Ministry of Micro, Small, and Medium Enterprises (MSMEs) and the Danantara Investment Management Agency (BPI) are currently seeking a low-interest credit scheme of below 10 per cent. Minister of MSMEs Maman Abdurrahman stated that this scheme is part of a plan to distribute IDR 1,200 trillion in credit by 2026, as directed by President Prabowo Subianto.
“Currently, we at the Ministry of MSMEs, together with Danantara, are preparing the formulation format,” Maman said during a working meeting with Commission VII of the Indonesian House of Representatives (DPR RI) in the Parliament Complex, Senayan, Jakarta, on Monday (18/5/2026).
The target borrowers are MSMEs that are non-bankable and non-feasible, meaning they lack collateral, assets, and financial or managerial expertise. Maman emphasised that the government has a duty to support these groups to empower them and develop their MSMEs. This specific group includes 15 million women participating in the Mekar programme under PT PNM.
According to Maman, President Prabowo has instructed his subordinates to reduce loan interest rates for these PT PNM customers. This move reflects the President’s commitment to supporting ultra-micro entrepreneurs and easing the burden on Mekar programme participants. “Until now, the rates have been approximately 20 to 25 per cent. The President’s order is to reduce them to below 10 per cent. That is the President’s mandate,” Maman noted.
Furthermore, the credit scheme will accommodate MSMEs that are non-bankable but feasible. These entrepreneurs lack collateral and assets but have established businesses. Maman stated that this group will be included in the KUR (People’s Business Credit) programme with a 6 per cent credit scheme, where customers receive an interest subsidy of 9 to 10 per cent. “We are allocating between IDR 280 trillion to IDR 300 trillion for this,” he added.
Lastly, for MSMEs that are both bankable and feasible—those possessing assets and financial capability—they will be integrated into commercial credit schemes.