Business · Economy · 2 hrs ago
Indonesia targets permanent 8% rate for PNM Mekaar loans
Indonesia plans to cut PNM Mekaar loan rates to 8% in the second week of November 2026, according to Micro, Small and Medium Enterprises Minister Maman Abdurrahman.
The rates are currently between 18% and 25%, making the planned change a substantial reduction for borrowers.
The policy is intended to ease the cost of loans for women running ultra-micro businesses who are economically disadvantaged.
The government has set aside about 2.6 trillion rupiah in subsidy funding through the end of December, but it is still working out how many borrowers that money can cover.
The start was delayed from September while officials tested the policy with about 2,000 Mekaar borrowers and reviewed the results.
The government says the lower rate will be permanent, and officials are preparing cooperation agreements before the planned November launch.
Indonesia plans to cut interest on PNM Mekaar ultra-micro loans from 18–25% to 8% starting in the second week of November 2026.
The government says the 8% rate will be permanent, following President Prabowo Subianto’s direction.
It has prepared about Rp 2.6 trillion in subsidy funding through the end of December 2026.
The policy was delayed while officials tested it with about 2,000 women borrowers and reviewed the results.
The government is still calculating how many borrowers the available funding can cover.
- Who
- Indonesia’s government, led on the policy by UMKM Minister Maman Abdurrahman.
- What
- It plans to reduce PNM Mekaar loan interest from 18–25% to 8%, permanently.
- When
- The change is planned to begin in the second week of November 2026.
- Where
- Indonesia; the loans are provided through the PNM Mekaar program.
- Why
- To ease the loan burden on women borrowers in the ultra-micro business category.
This story does not have two clearly opposing sides.
The policy was initially targeted to take effect, but the government delayed it to conduct a field trial.
A field trial involved about 2,000 PNM Mekaar women borrowers.
Officials reviewed the trial and Maman said the rate cut was planned for the second week of November.
The planned start of the 8% loan rate.
About Rp 2.6 trillion in subsidy funding has been prepared.
- Previous interest rate
- 18–25%
- Planned interest rate
- 8%, permanently
- Planned start
- Second week of November 2026
- Prepared subsidy funding
- About Rp 2.6 trillion through the end of December 2026
- Field trial
- About 2,000 women PNM Mekaar borrowers
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Perintah Pak Presiden berlaku secara permanen.
Alhamdulillah tadi kita evaluasi dan beberapa catatan tentang itu kita perbaiki dan kita review, dan insyaallah dalam quarter minggu kedua bulan November ini sudah bisa kita dorong.