Jakarta (VNA) – Indonesian President Prabowo Subianto on November 5 signed a Government Regulation granting debt forgiveness to about 1 million farmers, fishermen; and micro, small, and medium-sized enterprises (MSMEs).
The total value of the canceled loans, held by state-owned banks under the Association of State-Owned Banks (Himbara), amounts to 10 trillion IDR. Loan forgiveness is capped at 500 million IDR for business entities and 300 million IDR for individuals. This policy is aimed at alleviating financial burdens and boosting productivity in sectors critical to Indonesia’s economy.
According to MSME Minister Maman Abdurrahman, the policy specifically focuses on sectors hit hardest by major events like the COVID-19 pandemic and natural disasters.
He added that the policy will cover small businesses whose loans are provided by state-owned banks./.
