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View all search resultsOJK urges prudent risk controls amid Prabowo’s 5% loan program
Dian Ediana Rae, OJK’s chief executive for banking supervision, stated that while the program aims to expand public access to financing, the implementation must align with banks’ risk appetite and institutional expertise.
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Bank Indonesia Governor Perry Warjiyo (second right), Coordinating Minister for Economic Affairs Airlangga Hartarto (right), Finance Minister Purbaya Yudhi Sadewa (second left) and Financial Services Authority (OJK) chief Friderica Widyasari (left) deliver a press statement after a meeting with President Prabowo Subianto on May 5 at the Merdeka Palace in Jakarta. The president met with the Financial System Stability Committee (KSSK) to discuss financing diversification measures to strengthen the rupiah’s exchange rate stability. (Antara/Galih Pradipta)
T
he Financial Services Authority (OJK) urged banks to strengthen governance and risk management, amid President Prabowo Subianto’s pledge on Labor Day to launch a people’s credit program with a 5 percent annual interest cap.
Dian Ediana Rae, OJK’s chief executive for banking supervision, stated that while the program aims to expand public access to financing, the implementation must align with banks’ risk appetite and institutional expertise.
“To anticipate potential credit risks, the OJK is encouraging tightened supervision and the implementation of periodic stress tests to ensure capital resilience and asset quality are maintained across various economic scenarios,” Dian said in a statement on Saturday.
Banks participating in the program will be required to maintain adequate loan-loss reserves in accordance with prevailing regulations.
Read also: Indonesia launches new credit scheme for labor-intensive industries
Dian noted that the weighted average rupiah lending rate stood at 8.76 percent in March, down from 8.8 percent in February and 9.2 percent in March 2025.
The decline was driven by lower rates on productive loans, with working capital and investment loans falling 67 and 68 basis points year-on-year to 8 percent and 7.9 percent, respectively.
