Indonesia cuts micro-loan rates to eight percent to support MSMEs

"This is one indication of President Prabowo's commitment to the Indonesian economy, especially the people's economy and MSMEs,"

Yogyakarta (ANTARA) - Indonesian Finance Minister Purbaya Yudhi Sadewa emphasized that the government has lowered interest rates on micro-enterprise loans for MSMEs to encourage their growth.

"President Prabowo has confirmed that interest rates on loans to Micro Enterprises (UMi) can be reduced from 22 percent to eight percent," Sadewa said after opening the Micro Enterprise People's Market in Alun-Alun Kidul, Yogyakarta, on Thursday afternoon.

According to him, this policy reflects the Finance Ministry and the government's commitment to continuously strengthening the MSME economy so that it continues to grow.

"This is one indication of President Prabowo's commitment to the Indonesian economy, especially the people's economy and MSMEs," he said.

Sadewa views efforts to strengthen the MSME economy as part of a strategy to strengthen the rupiah exchange rate against the US dollar, which is currently weakening due to uncontrollable global market sentiment.

"This is due to several global market sentiments that we cannot control, but as long as we ensure the Indonesian economy grows and businesses like MSMEs can thrive, the rupiah will eventually strengthen," he said.​​​​​​​

Sadewa stated this because people will invest in places with strong economic growth and maintained socio-political stability.

"So, if MSMEs can grow strongly, socio-political stability will certainly be maintained, and we will ensure that the Finance Ministry and the government prioritize the MSME economy going forward," he said.

Sadewa conducted a series of working visits to Yogyakarta, with the main agenda including the inauguration of electric pedicabs with Yogyakarta Governor Sri Sultan Hamengku Buwono X and the opening of the 2026 UMi People's Market in Alun-Alun Kidul.

The 2026 UMi People's Market featured approximately 200 MSMEs fostered by the Finance Ministry's Special Mission Vehicle, the Government Investment Center (PIP), offering a variety of superior products to the public.

In addition to promoting and marketing MSME products, this event also provided affordable basic food packages, various competitions, and entertainment for the community.

On this occasion, the Finance Minister also introduced the Bekalista program, a form of community-based economic empowerment through pedicab electrification. A total of 80 beneficiaries participated in this program, with 15 pedicab drivers representing them at the event.

The Bekalista ecosystem is equipped with 12 charging stations, one mobile repair shop, eight spare batteries, and a main repair shop located at Yogyakarta State Vocational High School 3. The entire ecosystem's development involves 100 percent local Yogyakarta labor.

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Translator: Arie Novarina

Editor: Primayanti

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