PKB Reminds Potential Moral Hazard In Farmers' Debt Reduction

Illustration of farmers (ANTARA)

JAKARTA - Chairman of the PKB faction of the DPR RI, Jazilul Fawaid, reminded the potential for moral hazard from the policy of debt bleaching for farmers and micro, small and medium enterprises (MSMEs) by the President of the Republic of Indonesia, Prabowo Subianto.

According to him, it is necessary to ensure that the criteria for receiving debt bleaching policies and monitoring mechanisms are clear. So as to minimize the potential for collusion between business actors and banking groups who want to take personal advantage.

"Don't let this extraordinary policy be weak at the operational level so that it is utilized by irresponsible people," said Jazilul, Thursday, November 7.

Nevertheless, Jazilul fully appreciated the policy of the President of the Republic of Indonesia, Prabowo Subianto, who officially removed the bad debt bill from farmers and MSMEs. He considered that this step was clear evidence of Prabowo's alignment with the little people.

"We consider the President's move to sign Government Regulation (PP) Number 47/2024 concerning the abolition of bad debts for MSME actors is a heroic step to show the party of the state to the little people," said Jazilul.

"We hope that this partiality will become the framework of Pak Prabowo's government policy for the next five years," he continued.

The former deputy chairman of the MPR said that President Prabowo's move to write off bad debts from farmers, fishermen, small farmers would have a big impact on the mentality of small business actors. According to him, so far the perception has been embedded if the government only sided with big business actors.

Various incentive policies in the form of tax relief, ease of access to capital, and ease of permits so far seem to only be given to those with large capital. However, with Pak Prabowo's policy of removing bad debts from farmers and MSME actors, the state is also present for them," he said.

The PKB deputy also believes that President Prabowo's policy of eliminating wong cilik's debt will provide great impetus for farmers and other MSME players in the field to increase production in their respective sectors.

According to him, actors in various small business sectors have the hope that efforts to increase the scale of business will be protected and facilitated by the state.

"This spirit is expensive. Trusts for small businesses in the agriculture, fisheries, plantations, and other sectors to the state will increase so that it will have an impact on increasing production," he said.

The deputy chairman of the DPR RI Budget Agency also assessed that the policy of debt bleaching for farmers and MSME actors has the potential to increase the rate of economic growth. According to him, with this debt bleaching, farmers and MSME players can again access capital from the banking sector.

"On the other hand, new credit growth will encourage bank profitability so that it becomes a catalyst for increasing banking stocks in the future," said Jazilul.

It is known, President Prabowo Subianto signed PP 47/2024 at the State Palace Tuesday, November 5, evening. The elimination of MSME traffic jam receivables in the agriculture, plantation, fisheries, marine, and other sectors is expected to ease the burden on farmers, fishermen, and breeders who are the main food producers in the country.