Indonesia is Launching 6-month Loan Forgiveness Program for MSMEs
Good news for micro, small, and medium enterprises (MSMEs): Indonesia launches a six-month loan forgiveness program. Under this initiative, banks can write off bad debts of up to 500 million rupiah ($31,888) until May 2025.
MSMEs are encouraged to take advantage of this opportunity, which aims to stimulate economic growth and improve access to financing. It is expected to be beneficial for agriculture, MSMEs, and fishery, which are among the country’s key contributors to food production. Under the loan forgiveness program, MSMEs can secure new loans, lifting previous restrictions tied to outstanding bad debts written off at least five years prior.
A Chance to Expand Lending
The loan forgiveness program offers a chance to expand lending without financial repercussions. The regulation also protects state banks and their directors from legal liability for loan write-offs, encouraging broader participation in the program. This initiative supports his vision, and the economy is expected to grow 8% by 2029.
