TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsFinance Ministry to offer low-interest loans for regional projects
The scheme will offer interest rates as low as 0.5 percent to regional administrations with eligible projects and will be channeled through state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI).
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Finance Minister Purbaya Yudhi Sadewa provides information regarding the economic package program after a coordination meeting with President Prabowo Subianto at the Presidential Office in Jakarta on Sept. 15. (Antara/Muhammad Adimaja)
T
he Finance Ministry plans to offer low-interest loans to support projects proposed by regional administrations, aiming to ease the strain following widespread complaints over sharp cuts to regional transfers in this year’s and next year’s state budgets.
The scheme will offer interest rates as low as 0.5 percent to regional administrations with eligible projects, as part of the implementation of Government Regulation (PP) No. 38/2025 on regional administration lending mechanisms.
Finance Minister Purbaya Yudhi Sadewa said the funding could be channeled through state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI).
“Regional [administrations] don’t need to worry. If a project is reasonable and accepted by SMI, we will apply an interest rate lower than the current one. If they ask for 0.5 percent, we’ll give 0.5 percent,” Purbaya said during a meeting with the Regional Representatives Council (DPD) Committee IV on Monday.
The minister went on to say that he had discussed the low-interest loan scheme with SMI, during which he offered to inject Rp 6 trillion (US$359.1 million) in funds, but SMI could only absorb half of the amount.
“They [SMI] said maybe Rp 3 trillion could be absorbed in the fourth quarter. So, I’ll push that plan forward,” Purbaya added.
Read also: New government lending scheme potential ‘risk’ for fiscal discipline
