PNM Mekaar Loan Interest Rate Slashed to 8%

Minister of Micro, Small, and Medium Enterprises (UMKM) Maman Abdurrahman has announced a reduction in the interest rate for the PNM Mekaar programme’s loans to 8%, as a form of government support to strengthen financing for ultra-micro businesses. “It has been decided that the PNM Mekaar loan interest rate, which previously ranged from 18% to 25%, will be lowered to 8%,” Maman said, as quoted from a press release on Tuesday (23/6).

Maman explained that the policy stemmed from President Prabowo Subianto’s directive for tangible support to low-income communities, particularly the women ultra-micro and super-micro entrepreneurs who are PNM Mekaar customers. He noted that for more than a decade, millions of PNM Mekaar customers have borne relatively high loan costs. Therefore, the government is taking steps to ease the financing burden so that entrepreneurs have more room to develop their businesses.

He explained that the cost of loans has been influenced by the intensive mentoring model run by PNM through account officers and account advisors. They not only disburse financing but also provide mentoring, coaching, and monitoring of customers’ business development. “The government is providing a subsidy of around 10% so that the loan interest rate drops to 8%,” Maman said.

He added that the decision will be followed up by PNM together with Danantara by preparing the implementation mechanism and the necessary legal framework. “This decision has been made and will be followed up immediately. The legal framework is currently being prepared,” he stated. The Ministry of UMKM, together with the UMKM Financing Policy Committee, will also oversee the implementation of this policy to ensure it is well-targeted, effective, and provides comprehensive benefits for ultra-micro business actors.

As part of efforts to strengthen the UMKM empowerment ecosystem in an integrated manner, the Ministry of UMKM will integrate PNM Mekaar financing recipient data into the SAPA UMKM platform. This step is expected to make it easier for UMKM actors to access various government services, from financing, mentoring, and training to other empowerment programmes, in a faster, more targeted, and integrated way.