Prabowo presses for lower loan interest rates for low-income groups

Jakarta (ANTARA) - Indonesian President Prabowo Subianto on Wednesday ordered state-owned banks to lower lending rates for low-income borrowers, saying poorer Indonesians currently pay higher interest rates than large businesses.

“The poor are being asked to pay higher interest rates than big businessmen,” Prabowo said during a plenary session of the House of Representatives (DPR) in Jakarta.

“I order government banks to change this," he said, adding that the current lending structure was unfair and urged banks under the State-Owned Banks Association (Himbara) to strengthen their social commitment and support grassroots economic empowerment.

He said large corporations with strong capital access should seek financing from commercial and international markets instead of depending on subsidized domestic credit facilities.

According to the president, the policy aligns with Indonesia’s Pancasila economic principles, which emphasize equitable prosperity and social justice through stronger state intervention.

Separately on Wednesday, the government launched a regulation on natural resource commodity export governance aimed at increasing fiscal revenue and reducing foreign exchange leakages.

The policy is expected to strengthen state finances and expand fiscal space for social assistance and other public welfare programs, the government said.

Prabowo delivered the remarks while presenting the government’s 2027 Macroeconomic Framework and Fiscal Policy Guidelines (KEM-PPKF) before lawmakers and senior officials.

The government projects 2027 state revenue at 11.82 percent -12.40 percent of gross domestic product (GDP), while state spending is forecast at 13.62 percent -14.80 percent of GDP.

The 2027 budget deficit is targeted at 1.80 percent -2.40 percent of GDP under the government’s medium-term fiscal framework.