BBRI - Writes off IDR71 tn of bad MSME loans

BBRI - Writes off IDR71 tn of bad MSME loans Bank Rakyat Indonesia (BBRI) has written off IDR71 tn in non-performing loans, primarily from debtors in the Micro, Small, and Medium Enterprises (MSME) sector. Airlangga Hartarto, Coordinating Minister for Economic Affairs, stated that this policy aligns with President Prabowo Subianto’s directive, which emphasizes support for small businesses. “For MSMEs, debt write-offs and collection waivers have already been implemented, and Bank BRI has done the most in this regard,” he said. In addition to the debt relief policy, the government is also providing incentives for active MSMEs, including a 5% interest subsidy for investment loans. This program targets labor-intensive sectors such as textiles, garments, footwear, food and beverages, and furniture. The government is also aiming for a financial inclusion rate of 88.7%, given that MSMEs are the backbone of the economy, contributing 60% of GDP and absorbing 97% of the workforce. Airlangga praised BRI’s initiative involving 1,000 MSMEs, which aligns with President Prabowo’s Asta Cita vision of creating quality jobs and boosting exports. (Source : Idn Financials)