Antara News·Indonesia·Sunday, November 15, 2026 at 11:01 AM UTC

Indonesia pilots interest-free financing program for MSMEs

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A.P. Dewi, Tegar Nurfitra

Jakarta (ANTARA) - Indonesia's Coordinating Ministry for Community Empowerment has rolled out the Perintis Berdaya (Empowered Pioneers) program to expand access to interest-free financing for micro, small, and medium enterprises (MSMEs).

The ministry's Deputy for Coordination of People's Economic Empowerment and Migrant Workers Protection, Leontinus Alpha Edison, highlighted the program during a visit to Madiun, East Java, according to a statement received in Jakarta on Sunday.

"We need to provide MSMEs with access to raw materials, production technology, and markets. In this day and age, an omnichannel approach is essential," he said.

Edison described Perintis Berdaya as a means of helping business owners access financing options before approaching commercial financial institutions.

He added that the program was designed to provide MSMEs with mentoring and training, business facilitation, and support in accessing business loans.

The initiative offers more than just training, he said, noting that participants are also entitled to assistance in securing raw materials, improving production technology, expanding market access, and building sustainable businesses.

He further noted that adequate access to financing is essential for businesses to grow and thrive.

In this regard, he said the government recognizes that requirements imposed by commercial financial institutions often pose challenges for emerging MSMEs.

To address this obstacle, the ministry is piloting the empowerment program with philanthropic organizations in Bandung, Batu, Malang, and Aceh.

"We are bridging MSMEs before they access commercial financing schemes. Philanthropic organizations are expected to help graduates of Perintis Berdaya training through interest-free loans," Edison added.

He said the government expects the scheme to help MSMEs build a track record while strengthening their capacity to meet commercial financial institutions' requirements when seeking to scale up their businesses.

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