Bisnis.com, JAKARTA — The debt write-off by state banks for bad MSME loans is failing to have any positive impact on credit demand in the segment ever since President Prabowo Subianto pushed the matter by issuing Government Regulation No. 47/2024 on November 5, 2024, shortly after his inauguration.

The regulation stipulates the mechanism for write-off and debt forgiveness of bad loans held by micro, small, and medium enterprises (MSMEs) from banks or non-bank financial institutions under state-owned enterprises (SOEs).

Bisnis.com, JAKARTA — Sovereign wealth fund Danantara Indonesia is pushing to lower interest rates and extend the tenor of state cash placements in state-owned banks to better stimulate the economy, while the banks are asking more funds for the government’s ongoing credit injection program.

One month ago, the Finance Ministry moved IDR 200 trillion from Bank Indonesia (BI) into third-party funds (TPF) at state-owned banks to disbursed as loans. Bank Mandiri, BRI, and BNI each received IDR 55 trillion, while BTN received IDR 25 trillion and BSI was injected IDR 10 trillion.

Bisnis.com, JAKARTA — The Finance Ministry is evaluating the government’s IDR 200 trillion credit injection program and have found its realized disbursement to be uneven, with one bank in particular lagging behind its peers.

The funds, previously held by Bank Indonesia, were placed in five state-owned banks at certain amounts to be disbursed as loans. Bank Mandiri, BRI, and BNI each received IDR 55 trillion, while BTN received IDR 25 trillion and BSI IDR 10 trillion.