Bangkalan Regency Introduces Zero‑Interest UMKM Loans as Indonesia Plans 50% Marketplace Fee Discount

Bangkalan Regency in East Java, Indonesia, launched a subsidised loan programme for micro, small and medium enterprises (UMKM). County Mayor Lukman Hakim said the government will cover all interest, allowing zero‑percent loans of up to Rp20 million for one year. The scheme aims to reach 1,000‑1,200 businesses, potentially creating about 2,000 jobs. BPR Jatim Bangkalan head Irwan Eka Wijaya called it the first such initiative in East Java and possibly the nation. Ten borrowers received loans at the launch and about 50 more applications are under verification. Loans are processed through banks, which verify eligibility and accept flexible collateral such as vehicle titles.

Meanwhile, the Ministry of UMKM is drafting a ministerial regulation to protect and strengthen UMKM competitiveness on e‑commerce platforms. Minister Maman Abdurrahman said the rule will grant a 50% discount on marketplace service fees for UMKM sellers, standardise fee categories, and require contracts of at least one year with a three‑month notice for any fee changes. The discount applies only to sellers registered in the government‑run SAPA UMKM system, which links them to banks and investors. The draft has completed legal harmonisation and awaits final approval.