President Prabowo Orders PNM Mekaar Interest Rate Cut to Below 9 Percent

President Prabowo, on Wednesday (05/13), delivers remarks at the Attorney General’s Office complex in Jakarta. (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto has ordered the state-backed microfinance program Permodalan Nasional Madani (PNM) Mekaar to reduce its interest rate to below 9 percent.

“This is a political decision. I’ve decided to lower the interest rate for Permodalan Nasional Madani, the loan for underprivileged families, from 24 percent to below 10 percent, below 9 percent,” the President said in his remarks at the Attorney General’s Office complex in Jakarta, on Wednesday (05/13).

President Prabowo, in his remarks, also highlighted the inequality in access to funding that burdens microbusinesses with higher interest rates than larger businesses. “Large businesses receive interest rates of 10 percent or 9 percent when they go to the bank. Mr. Rosan, how much is it? 9 percent? So, imagine the privileged ones getting 9 percent while the underprivileged ones get 24 percent. This is a Pancasila country. I don’t understand,” he added.

According to President Prabowo, the state must not allow the lower classes to bear a heavier financial burden than the upper classes.

“We will continuously review the system’s weaknesses and work to improve them. Our guiding principles are Pancasila and the 1945 Constitution. They are not just slogans. We must strive to realize their ideals,” the President said.

In addition to the policy of lowering interest rates, the President also emphasized the importance of regulatory reform and expediting business licensing. He ordered all ministries and institutions to cut the red tape in the business and investment sectors.

“All officials from all ministries and institutions must seek ways to enhance the system, reduce inefficiencies, simplify licensing, and avoid complicating it. Entrepreneurs have also voiced complaints. They are eager to work and invest, but the lengthy permit approval process can sometimes take a year or two,” the President stated.

Furthermore, the President also ordered Minister of State Secretary Prasetyo Hadi to form a special deregulation task force to simplify various regulations deemed overlapping. The President also underlined those entrepreneurs operating effectively must be provided with full support to create jobs and strengthen the national economy.

“Entrepreneurs must be helped and supported. We discipline the bad actors, but the good ones, those who are truly willing to work, must be supported. Many foreign investors also complain that in Indonesia, permits often take a long time and require extensive processing,” he added.

The President also urged all levels of the Government to continue improving the system and increasing efficiency for the prosperity of the people. “I believe that soon we will have enough money. In fact, with just such an allocation, we can already do a lot, and we will do even more,” he concluded. (BPMI of Presidential Secretariat) (FI/MMB)