Prabowo Urges State Banks to Lower Loan Rates for MSMEs

President Prabowo Subianto has called on the leadership of Indonesia’s state-owned banking association, Himbara, to guarantee that credit interest rates for micro, small, and medium enterprises (MSMEs) are lower than those offered to corporations.

During a meeting at the Presidential Palace in Jakarta on Thursday, the President highlighted that MSMEs often face higher or equal interest rates compared to corporations, a situation he wants rectified so that the benefits are truly felt by the public, particularly small business owners.

“It is precisely these small and medium enterprises that sometimes receive higher interest rates than corporations, or at least the same level, when they should be lower,” said Minister of Investment and Downstreaming and CEO of Danantara, Rosan Pereslani, during a press briefing at the palace on Thursday evening.

The President’s briefing was delivered to the top executives of five state-owned banks: Bank Mandiri CEO Riduan, BNI CEO Putrama Wahju Setyawan, BRI CEO Hery Gunardi, BTN CEO Nixon L.P. Napitupulu, and BSI Chief Commissioner Muhadjir Effendy.

In the same meeting, President Prabowo reminded the banks to uphold the principle of prudence in their operations. He also stressed that these institutions serve as the “lifeblood of the economy,” noting that their combined market capitalisation of Rp1,100 trillion represents approximately 10 percent of the total value of companies listed on the Indonesia Stock Exchange.

Given this significant role, the President urged the banks to actively support strategic government programmes, with a particular focus on the food sector, which he described as a key determinant of national self-reliance.