Indonesia prepares loan interest cut for women under KPPS scheme
Officials plan a partial rollout before the end of 2026, with Rp2.6 trillion prepared for subsidies through December.
Indonesia is working towards cutting borrowing rates under the Kredit Perempuan Prasejahtera (KPPS) programme from 25 per cent to 8 per cent, MSME Minister Maman Abdurrahman said after a coordination meeting in Jakarta on 2 November 2026.
Maman said the government had prepared Rp2.6 trillion to subsidise some programme recipients through the end of December 2026. KPPS operates under PNM Mekaar and is intended to reduce financing costs for its 12-15 million women borrowers.
Field testing had delayed the original implementation schedule, Maman said. Officials had reviewed issues identified during the trials and made adjustments, with the aim of moving implementation forward in the second week of November.
The MSME Ministry and PNM Mekaar have agreed on technical cooperation, he added. The ministry will act as the budget user authority, while PNM Mekaar will implement the programme.
BRI president director Hery Gunardi said implementation was planned for the remainder of 2026, initially covering only some participants. The government would bear the full interest subsidy, including insurance, he said.
