UMKM Minister Says Mekaar Interest Rate Cut Shows Government's Pro-People Stance

Jakarta (ANTARA) - Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman has said that the reduction in interest rates on PNM Mekaar (Membina Ekonomi Keluarga Sejahtera) financing to 8 percent reflects the government’s support for lower-income communities.

“The aim is to ensure the government’s pro-people stance, as expected by the President, towards small communities, especially women,” Maman said in Jakarta on Wednesday.

According to him, a coordination meeting between the Ministry of MSMEs, the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and Danantara resulted in the interest rate for the Mekaar programme under PT Permodalan Nasional Madani (PNM) (Persero) being reduced from the previous 20 percent to 8 percent.

Maman said the interest rate cut was a direct instruction from President Prabowo Subianto, who wants low-income communities not to be burdened with high costs.

He explained that calls for a reduction in Mekaar interest rates had been made for more than 10 years, and only now has the rate been cut by 12 percentage points.

“It has been decided that the interest rate will be reduced from around 20 percent to 8 percent,” he said.

Maman confirmed that the interest rate reduction for the PNM Mekaar programme will be permanent, allowing low-income communities to borrow at a low rate.

“The President’s response has been positive, and I, as his assistant and also representing the Mekaar women, express my gratitude and appreciation to the President for this policy that is very much in favour of lower-income communities. This is a great relief,” he said.

Permodalan Nasional Madani (PNM) has reached and served 23.3 million PNM Mekaar customers across Indonesia, in an effort to strengthen its role as an empowerment institution that provides access to financing and mentoring for communities not yet reached by formal financial services.

“Every financing provided must lead to an improvement in the quality of life of customers and their families,” said PNM President Director Kindaris in Jakarta on Friday (26/6).

He said the state-owned company has served 23.3 million PNM Mekaar customers throughout Indonesia, the majority of whom are underprivileged women who are the backbone of their families’ economies.

Kindaris added that this success is measured not only by the amount of financing disbursed, but also by the impact felt by customers and their families.