Indonesia’s government is preparing alternative financing schemes to channel Rp400 trillion in credit to farmers and fishers, Minister for Economic Affairs Airlangga Hartarto said. The instruments may include Kredit Usaha Rakyat (KUR) and other financing tools, with interest rates yet to be set.
Ministry weighs options
“The plan is intended more as support; we have the KUR pattern and others. It is just a matter of what interest rate is set,” he said. He gave no further detail on which instruments would ultimately be used.
President Prabowo Subianto had separately set a target of Rp400 trillion in credit for small communities for the coming year. He made the remarks at the national coordination meeting of the Regional Financial Access Acceleration Team (Rakortas TPAKD) at Jiexpo Kemayoran on Thursday, the same day as Airlangga’s comments.
Scale of the target
Prabowo said the scheme is meant to reach roughly 28 million families. “The target is approximately 28 million families; if spouses and children are counted and multiplied by four, that reaches roughly 100 million of our people,” he said.
Rp53 trillion in credit has already been disbursed under the programme so far. Prabowo said the target could increase if Indonesia secures its natural resources. “Every family must have real purchasing power; this is what we are fighting for,” he said.
Related: Indonesia plans Rp1,300 trillion in Q4 budget spending
