Govt to lend Rp400T, boost purchasing power: Minister

Jakarta (ANTARA) - President Prabowo Subianto's target of disbursing Rp400 trillion (around US$22.10 billion) in loans in 2027 is aimed at expanding public access to finance and boosting purchasing power, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

"We will add more loans and allocate them to their respective sectors because the President wants people to develop financial literacy and have money to spend," he said at his office in Jakarta on Friday.

Airlangga noted the government already operates the People's Business Credit (KUR) program, with a lending ceiling of up to Rp300 trillion (around US$16.57 billion), and has earmarked an additional Rp50 trillion (around US$2.76 billion) for the housing sector.

He added the business credit program could help support the 2027 lending target, although the government remains open to other viable financing schemes.

The minister also added the possibility of channeling the lending mechanism through cooperatives established under the Red and White Village Cooperatives program.

President Prabowo first announced the productive lending initiative during the National Coordination Meeting of Regional Financial Access Acceleration Teams (TPAKD) in Jakarta on Thursday (October 22), saying around 28 million families are expected to access the Rp400 trillion loan allocation next year.

He noted that the government is targeting farmers, fishers, rural communities, low-income urban residents, and people living in underdeveloped, frontier, and outermost regions.

The loans are projected to benefit around 100 million Indonesians nationwide, assuming an average of four people per family, he added.

President also emphasized the government's commitment to placing public welfare at the center of its economic policy, stressing the importance of strengthening household purchasing power.

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Translator: Bayu Saputra, Tegar Nurfitra
Editor: Bayu Prasetyo
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