Prabowo signs regulation on bad debt forgiveness for small businesses

Jakarta (ANTARA) - President Prabowo Subianto signed Government Regulation No. 47 of 2024 on Tuesday, November 5, implementing debt relief for micro, small, and medium enterprises (MSMEs) in Indonesia.

"The government hopes it will help our brothers and sisters working in the agriculture and fisheries sector as essential producers of our food so that they will be empowered to continue their work," Prabowo remarked while signing the regulation at the Merdeka Palace.

He affirmed that the regulation to help small businesses in fisheries, farming and agriculture, and other sectors will be followed up and implemented by relevant ministries and government agencies.

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Meanwhile, Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman explained that the debt forgiveness policy will cover small businesses whose loans are provided by state-owned banks.

"(The loan forgiveness) applies to small businesses in the fisheries and farming sector who can no longer repay their overdue loans. State-owned banks are handling the write-off process," he explained after President Prabowo signed the regulation.

The minister elaborated that the loan discharge would apply to small businesses in fisheries, farming and agriculture, and other sectors affected by natural disasters, such as earthquakes and the COVID-19 pandemic.

He stated that borrowers unable to repay their loans for 10 years will be eligible for debt forgiveness, with caps set at Rp300 million for individuals and Rp500 million for business entities.