Purbaya Slashes Ultra Micro Loan Interest from 22 Percent to This

Finance Minister Purbaya Yudhi Sadewa has confirmed that the government has lowered the interest rate on micro business loans for MSMEs from 22 percent to eight percent. Purbaya claimed the policy was implemented as part of the government’s commitment to strengthening the MSME economy, ensuring its continued growth will always be a priority. “President Prabowo has even ensured that the interest rate for Ultra Micro (UMi) loans can drop from 22 percent to eight percent,” said Minister Purbaya after opening the UMi People’s Market in Yogyakarta. Purbaya assessed that efforts to strengthen the MSME economy are part of a strategy to bolster the rupiah’s exchange rate, which is currently weakening due to uncontrollable global market sentiment. “As long as we ensure the Indonesian economy grows and MSMEs can thrive, the rupiah will eventually strengthen,” he said, noting that investors will place their money in places with good economic growth and maintained socio-political stability. The Finance Minister conducted a series of working visits in Yogyakarta, including the inauguration of electric becaks with the Governor of the Special Region of Yogyakarta, Sri Sultan Hamengku Buwono X, and the opening of the UMi People’s Market 2026. The market featured around 200 MSMEs fostered by the Ministry of Finance’s Special Mission Vehicle, the Government Investment Centre, offering various superior products to the public. The event also provided cheap food packages, various competitions, and entertainment. During the visit, the Minister introduced the Bekalista programme, a community-based economic empowerment initiative through becak electrification, with 80 beneficiaries enrolled in the programme.