Prabowo Wants People's Business Credit Interest Capped at Maximum 5% per Year

President Prabowo Subianto has ordered the consortium of state-owned banks (Himbara) to set the interest rate on People’s Business Credit (KUR) at a maximum of 5% per year.

This was stated by Prabowo at the International Labour Day or May Day 2026 commemoration at the National Monument (Monas) on Friday, 1 May 2026.

The Head of State mentioned hearing complaints from workers who spend 30% of their income on house rent.

Prabowo promised that workers could pay more affordably to finance their own homes. Even, the credit tenor can be extended up to 40 years. Prabowo stated that workers, farmers, and fishermen would not possibly flee from their obligations.

“You said earlier that 30% of your income goes to rent, how much? Later we will ensure that you will own that house. So what was 30% for rent, we will reduce it. That is for you to instal your own house. Instal it for 20 years, if not possible 25 years. If not settled in 25 years, instal 30 years. If not possible 35 years, 40 years because workers won’t possibly run away. Farmers and fishermen won’t possibly run away,” said Prabowo.

The Head of State stated that so far, the people have been strangled by high credit interest rates. Credit interest for the people can reach 70% per year. For this reason, Prabowo has ordered Himbara banks to set the people’s credit interest at a maximum of 5% per year.

“So far, if small people borrow money, the interest is extraordinarily crazy. Right? Small people borrow money, the interest can be 70% per year. Right? I have ordered the Indonesian state-owned banks, soon we will disburse credit for the people at a maximum of 5% per year,” he said.

Therefore, Prabowo claimed to be determined in fighting for the interests of all Indonesian people. Especially, the workers whose lives are still difficult.

He emphasised that he would not hesitate to defend the interests of all Indonesian people.

“I am determined, I swear to fight for the interests of all Indonesian people and especially those whose lives are still difficult, that is my duty and that is the duty of the government I lead and that is our determination, we will not be intimidated. We will not hesitate to defend the interests of the Indonesian people,” he added.