Prabowo Urges State Banks to Lower UMKM Interest Rates

President Prabowo Subianto has called on the directors and commissioners of state-owned banks within the Association of State-Owned Banks (Himbara) not to be solely profit-oriented. The Head of State emphasised the importance of the banking sector’s role in delivering tangible benefits to the public, especially micro, small, and medium enterprise (UMKM) players.

The message was conveyed by Minister of Investment and Downstreaming/Head of BKPM and CEO of Danantara, Rosan Roeslani, following a briefing by President Prabowo to Himbara directors and commissioners at the Presidential Palace complex in Jakarta on Thursday, 18 June 2026.

According to Rosan, the President reminded that national banks must provide equal access and opportunity for all levels of society, from UMKM to the corporate sector.

“Banks should not merely pursue profit, but their presence must be felt by the community, by the people, in the form of providing equal opportunities across all layers, from UMKM, commercial, to corporate,” Rosan said.

He explained that the five banks under Himbara—Bank Mandiri, BNI, BRI, BSI, and BTN—hold a highly strategic position in the national economy. Rosan noted that the total capitalisation of these five banks reaches approximately Rp1,100 trillion, equivalent to 10 percent of the total market value of all listed companies in Indonesia. This substantial value gives Himbara significant influence over the direction of national economic development.

In his briefing, President Prabowo also urged Himbara to continue conducting business prudently. At the same time, state banks were encouraged to provide greater support to UMKM, including through more competitive lending rates.

According to Rosan, the President believes that small and medium enterprises should not be burdened with higher credit interest rates compared to large corporations.

“It is precisely these small and medium enterprises that sometimes receive higher interest rates than corporations; they should be at the same level, or even lower. It must be lower because this is truly felt by the community, especially UMKM,” he said.

Beyond strengthening financing for the productive sector, Himbara is also expected to become a driving force for various government priority programmes. With their capacity and assets, state banks are seen as having a vital role in sustaining economic growth and national stability.

“The President expressed the view that banks can play a very important role in all sectors. This is the lifeblood of our economy, the lifeblood of our economy,” Rosan stated.

The directive underscores the government’s commitment to encouraging the banking sector not only to record strong financial performance but also to expand fairer and more inclusive financing access for the public, particularly UMKM players who form the backbone of the national economy.