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Mahfud MD promises loan forgiveness for farmers, fishermen
Vice presidential candidate Mahfud MD vows to forgive farmers and fishermen who have defaulted on their loans, saying it will not burden state finances if corruption is eradicated.
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Presidential candidate and former Central Java governor Ganjar Pranowo (left) and vice presidential candidate Mahfud MD attend the last vice presidential election debate on Jan. 21, 2024, at the Jakarta Convention Center (JCC) in Jakarta. (AFP/Yasuyoshi Chiba)
Vice presidential candidate Mahfud MD pledged to forgive the debts of farmers and fishermen who have defaulted on their loans if he and presidential candidate Ganjar Pranowo win the 2024 election.
"Take note, all farmers and fishermen. If you have taken out loans and are unable to repay them, they will be forgiven, they will be cleared," Mahfud said in Pesawaran regency, Lampung, on Thursday, as quoted by kumparan.com news portal.
He said that the total value of loan defaults of farmers and fishermen was not too high and that canceling these debts would not burden state finances.
Mahfud revealed that his team had calculated the total loan value of farmers and fishermen and found that the non-performing loans amounted to Rp 688 billion (US$43.45 million).
The vice presidential candidate also claimed that the figure was smaller compared to the amount of state money lost because of graft. Mahfud did not provide the figure of losses caused by corruption.
"If corruption is eradicated, just take 50 percent of [the recovered funds] and use Rp 688 billion to subsidize the repayment of farmers’ and fishermen’s debts. It's only a small amount," he said.
Previously, on Jan. 2, presidential candidate Ganjar also explained that the non-performing loans would be cleared or forgiven so that farmers and fishermen would not owe the state. However, he said that his team was still studying the program to ensure that it was well-targeted.
