SURAKARTA - Deputy Minister of Finance Suahasil Nazara reminded the Government Investment Center (Persero) or PIP to keep the interest rate for the Ultra Micro (UMi) financing scheme low, namely a maximum of 4 percent, in order to expand access to affordable financing for MSMEs.
This was conveyed by him during a press working visit 2026 on the Ministry of Finance's role in improving the quality of settlements and empowering the community in the city of Surakarta, Thursday, February 12.
Suahasil explained that the interest rate charged by PIP to financing institutions is generally in the range of 2 to 4 percent.
He added that with this interest rate, the public can obtain loans at a lower cost than loans from commercial banks.
According to him, the low interest rate is indeed designed as a form of government support to the community, not for commercial purposes.
"PIP itself can be 2 percent, 3 percent, a maximum of 4 percent. So the interest is cheap because the goal is to help the community, not commercial interest," he said.
However, he admitted that at the level of the distribution institution, interest rates could be adjusted due to the cost of assistance and empowerment to debtors.
Although allowed, Suahasil reminded that the additional interest must be maintained so that it does not approach the banking interest rate.
"We hope that if it is added, it should not be as high as bank interest, because if it is not, you can borrow from the bank, it's like that, so I ask the government investment center to actively look for micro-businesses that can be financed," he said.
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