Indonesia launches KPPS credit program for underprivileged women

The Indonesian government has officially launched the Kredit Perempuan Prasejahtera (KPPS) program to expand access to productive financing for women from underprivileged families. This initiative follows a direct instruction from President Prabowo Subianto to reduce the interest burden on vulnerable social groups.

Under the new regulation, Ministerial Regulation Number 7 of 2026, the interest rate for these loans has been slashed from approximately 24 percent per year to a flat 8 percent per year through government interest subsidies. The program offers a loan ceiling of up to Rp15 million per contract and requires no additional collateral.

To qualify, applicants must be women from underprivileged families verified within deciles 1 to 4 of the national socio-economic data. Recipients must also possess a National Identity Number (NIK) and family card, and be part of a group consisting of at least five members from the same local environment.