CNA – Indonesia has opened a six-month window until May 2025 for certain businesses to receive full loan forgiveness from state banks, a policy that aims to boost loan and economic growth, according to details of a new regulation.
Indonesia’s President Prabowo Subianto last week signed off on a government regulation that allows state lenders to fully write off bad debts of certain micro, small, and medium enterprises (MSMEs), which are major contributors to Indonesia’s gross domestic product.
“We hope this could help our brothers and sisters who work in agriculture, MSMEs, and as fishermen who are very important food producers. They can continue their businesses and they can be more useful for the nation,” Prabowo said in a statement.
Prabowo has pledged to lift Indonesia’s annual economic growth by three percentage points to eight per cent under his current presidential term, which will last until 2029. Boosting food production is one of his key programmes.
