Thekabarnews.com—Indonesian President Prabowo Subianto has ordered the government to reduce the interest rate of the Permodalan Nasional Madani (PNM) Mekaar program to below 9 percent. This is a big policy shift that will ease the financial burden on low-income families and microentrepreneurs.

President Prabowo announced it in his speech at the Attorney General’s Office complex in Jakarta on Wednesday, May 13, 2026.

“It was a political decision. We made it, and we will execute it: we will lower the credit interest rate for poor and underprivileged families from 24 percent to below 9 percent,” Prabowo Subianto said.

He said the state should not let small business owners and low-income borrowers pay more for financing than big corporations.

Prabowo said the present situation was a reflection of an unfair financing structure. Microentrepreneurs often paid much higher interest rates than big business groups with better access to formal banking systems.

“The state should not let the small people carry a heavier burden in financing than big business,” Prabowo said.

President Prabowo emphasized that economic justice should not be mere sloganeering but a reality in policy.

The president also tied the policy to the implementation of Pancasila and the 1945 Constitution. He said both should be practical foundations for public policy rather than symbolic references.

He said the government has to make sure that financial inclusion reaches the most vulnerable groups, especially women and informal sector workers. Many of these groups rely heavily on small-scale financing programs such as PNM Mekaar.

Prabowo also stressed the need for regulatory reform and a faster business licensing process. This initiative comes in addition to lowering the interest rates on credit.

He instructed ministries and government agencies to eliminate the bureaucratic obstacles that frequently hinder investment and restrict business growth.

The president said excessive regulation and overlapping permit systems still discourage entrepreneurship and undermine national economic competitiveness.

Prabowo told State Secretary Prasetyo Hadi to make a special deregulation task force to handle the issue. The task force will aim to simplify overlapping regulations and enhance ease of doing business across sectors.

The president said that the government should give full support to fair businesses that help in job creation. They should not face administrative hurdles.

He believes that supporting productive sectors and strengthening small businesses is key to reducing inequality and achieving economic resilience.

The PNM Mekaar program itself has long been known as one of Indonesia’s important microfinance programs. It is especially important for less prosperous women and ultra-microentrepreneurs.

Millions of borrowers nationwide could feel the direct impact of a big cut in interest rates.

But the success of this measure depends on the speed at which financial institutions adjust their operational mechanisms. The move could boost purchasing power and reduce dependence on informal lending.

For now, Prabowo’s directive sends an important message: a more equitable distribution of capital must balance economic growth. This is particularly important for people at the lower end of the economy.

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