Antara News·Indonesia·Tuesday, November 10, 2026 at 07:22 AM UTC

Indonesia tests PNM financing scheme with interest capped at 8 percent

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Anita, Kenzu

..the scheme must be designed to remain viable over the long term so that underprivileged women in need of capital can continue to benefit from it.

Jakarta (ANTARA) - The government is testing a financing scheme for underprivileged women through state-owned microfinance company Permodalan Nasional Madani (PNM), with interest rates capped at eight percent, Coordinating Minister for Community Empowerment Abdul Muhaimin Iskandar said.

“The President has instructed PNM to implement this as quickly as possible, with financing interest capped at eight percent for underprivileged women, and the scheme is currently being tested,” Iskandar said in a statement on Tuesday.

He said the plan to reduce financing interest from around 24 percent to a maximum of eight percent would help expand access to capital for underprivileged women, enabling them to develop businesses and increase household incomes.

Through its joint liability financing scheme, PNM has so far reached 23.3 million underprivileged women.

According to Iskandar, the achievement demonstrates women's significant potential to drive the community-based economy.

He expressed hope that financing and business mentoring would enable women with previously limited access to capital to establish businesses and contribute to household economies.

However, he stressed that lower financing interest rates must be accompanied by considerations of financial sustainability.

He said the scheme must be designed to remain viable over the long term so that underprivileged women in need of capital can continue to benefit from it.

In addition to expanding access to affordable financing, the government is encouraging micro, small, and medium enterprises (MSMEs), particularly women-led businesses, to expand their operations.

“Strengthening market access, technology, and capital is part of efforts to create opportunities for MSMEs to grow and move up to the next level,” Iskandar said.

Through stronger PNM financing and a broader business ecosystem, the government hopes more underprivileged women will have opportunities to become productive economic participants. With more affordable financing and sustained business support, he said, empowerment is expected to go beyond providing capital and help build economic self-reliance among families.

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