President Prabowo orders state banks to expand UMKM financing

President Prabowo Subianto instructed the Himpunan Bank Milik Negara (Himbara)—the state‑owned banks Bank Mandiri, BRI, BNI, BTN and BSI—to look beyond profit and increase the availability of credit for micro, small and medium enterprises (UMKM). He stressed that loan interest rates for UMKM should be lower than those given to large corporations, saying, “(Bunga kredit) Harus lebih rendah karena ini benar-benar dirasakan oleh masyarakat terutama UMKM.” Prabowo highlighted the strategic importance of Himbara, noting their combined market capitalization of roughly Rp1,100 trillion, about 10 % of Indonesia’s total market cap. The directive was delivered at a meeting in the presidential palace attended by bank CEOs, senior ministry officials and the Coordinating Minister for Economic Affairs, emphasizing the banks’ role in supporting the food sector, broader economic independence, and inclusive growth while maintaining professional governance and prudent risk management.