Purbaya Prepares New Subsidy Measure to Fulfil Prabowo's Directive to Cut PNM Interest Rates

The government is beginning to prepare a new subsidy scheme to cut interest rates on ultra-micro credit from PT Permodalan Nasional Madani (PNM) Mekaar to below 9 per cent, in accordance with President Prabowo Subianto’s directive.

Finance Minister Purbaya Yudhi Sadewa said that part of the interest subsidies for the Kredit Usaha Rakyat (KUR) programme will be redirected to support financing for PNM Mekaar’s ultra-micro customers.

“Subsidies, part of the KUR (will be redirected) there (to PNM). We might add more later, but the first step is to ensure that the super-micro [loans] can get interest below 9 per cent as the President said,” Purbaya told journalists in Jakarta on Wednesday (13/5/2026).

According to Purbaya, the government is still calculating the subsidy needs required to press down the ultra-micro credit interest rates in line with the President’s target.

“The allocation will be handed over to Danantara; they are calculating it. The President’s and Danantara’s plan is below 9 per cent, perhaps 8 per cent, but it’s being recalculated,” he said.

Previously, President Prabowo Subianto specifically requested a drastic cut in PNM Mekaar credit interest rates from the current level of around 24 per cent to just 8 per cent.

Prabowo assessed that the ultra-micro credit interest rates imposed on small communities so far are too high, even far above the loan interest rates received by large entrepreneurs from banks.

According to Prabowo, this situation is unfair because the small community group must pay the highest interest rates for access to business financing.

“Meanwhile, large entrepreneurs, if they go to the bank, might get 10 per cent, 9 per cent,” he said.