Prabowo Signed Regulation to Erase MSME Bad Debts for Farmers

Jakarta, VIVA – President Prabowo Subianto has signed Government Regulation No. 47 of 2024, which authorizes the write-off of bad loans for micro, small, and medium enterprises (MSMEs) in the agriculture, plantation, livestock, fisheries, and maritime sectors.

"This program from President Prabowo symbolizes the government's support for the approximately one million MSME actors in the agricultural and fisheries sectors," said Maman Abdurrahman, the Minister for MSMEs, on Tuesday (Nov 5) at the Jakarta Presidential Palace Complex.

The minister explained that MSMEs will be granted loan write-offs, specifically for those who borrowed from state-owned banks under the Himbara group.

According to him, the average loan value for businesses is capped at IDR 500 million.

"The loan cap is IDR 500 million for businesses and IDR 300 million for individuals," the minister stated.

However, Minister Abdurrahman emphasized that the debt forgiveness for MSMEs in agriculture, fisheries, and plantation sectors was granted by President Prabowo’s administration due to significant issues such as natural disasters.

"For example, earthquakes, natural disasters, and the impact of COVID-19. So, this isn’t a blanket write-off for all MSMEs—only for those truly beyond recovery," he clarified.

Additionally, MSMEs in the fisheries and agriculture sectors that have defaulted on payments and reached their loan maturity dates have already had their debts written off by Himbara banks.

“These are MSMEs that no longer have the ability to pay, with debts stretching over approximately 10 years. Let me stress that this isn’t for all MSMEs. For those assessed by Himbara banks as financially viable, they will not receive this debt relief," the minister concluded.