JAKARTA – PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) has written off IDR 71 trillion 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 at the BRI Microfinance Outlook 2025 event on Thursday (30/1).

Airlangga explained that this step is more than just administrative; it is part of the government’s strategy to strengthen the resilience of MSMEs amid global economic uncertainties. He emphasized that the bad debt write-off reflects the government’s commitment to the public.

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 Finance Minister has already approved this, and regardless of the bank, if it provides investment loans to MSMEs in labor-intensive sectors, it will receive incentives,” he added.

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.

For reference, the MSME debt write-off policy is governed by Government Regulation (PP) No. 47 of 2024 on the Write-Off of Bad MSME Debts. This regulation allows for the write-off of bad debts at state-owned banks (SOEs), particularly for MSMEs in agriculture, plantations, livestock, fisheries, and marine sectors. (DK/ZH)