Danantara asks BRI to develop farmer loans targeting 8–9 per cent interest
The proposed financing would be channelled through Merah Putih village cooperatives, with around 13,000 earmarked for the initial implementation stage.
Indonesia’s BP BUMN and Danantara have asked PT Bank Rakyat Indonesia (Persero) Tbk (BRI) to develop lower-interest financing for farmers through Merah Putih village cooperatives. Discussions aim to bring borrowing costs that could reach 48 per cent down to around 8–9 per cent a year.
Dony Oskaria, head of BP BUMN and Danantara’s chief operating officer, has discussed the proposal with management. According to remarks carried on BP BUMN’s official Instagram account, the talks covered designing financing products, outreach and preparations for a phased introduction.
Dony said the initiative followed President Prabowo Subianto’s direction to end farmers’ dependence on moneylenders charging high interest. He said lower financing costs were expected to improve farmers’ incomes.
The cooperatives would also help provide agricultural inputs rather than serve only as lending channels. Financing could take the form of goods such as fertiliser and seeds, which Dony said would help direct support towards farmers’ production needs.
Around 13,000 Merah Putih cooperatives are intended for the first stage. Selection would proceed gradually, based on mapping and each cooperative’s readiness. The approach is intended to strengthen oversight of financing, maintain credit quality and limit problem-loan risks.
