Jakarta – President Prabowo Subianto has signed Government Regulation (PP) Number 47 of 2024 concerning the Write-Off of Non-Performing Loans for Micro, Small, and Medium Enterprises (MSMEs). This provides a legal framework for state-owned banks (Himbara) to clear bad debts that meet the criteria set by the regulation.
Minister of MSMEs Maman Abdurrahman stated that approximately 70,000 entrepreneurs are currently listed to receive the debt write-off. He mentioned that the debt clearance process is only awaiting execution by the respective state-owned banks.
“Based on the current data, everything is ready and verified. Approximately 70,000 MSME entrepreneurs are eligible,” Maman said when speaking to reporters after the Entrepreneur Hub event at Trisakti University, Jakarta, on Thursday (November 28, 2024).
He explained that Himbara banks only need to finalize their internal rules related to the MSME debt write-off. They will then report the list of entrepreneurs whose debts will be cleared to their respective shareholders. Once shareholder approval is obtained, Himbara banks will proceed to write off the registered MSME debts through loan write-offs.
“For the write-off process, it will be reported at the General Meeting of Shareholders for each Himbara bank. Once approved, the process will be implemented,” he explained.
Maman added that the number of MSMEs benefiting from the program could increase as the Ministry, along with the state-owned banks, continues to consolidate and verify data. However, he could not yet disclose the total amount of debt to be written off.
“There is potential for the number to increase, depending on the ongoing data at each Himbara bank,” he said.
“(The total debt to be written off?) Well, I can’t confirm the amount yet, but it’s roughly around 70,000 MSME entrepreneurs in the first batch. We’ll see later as the data is still being consolidated with the Himbara banks. For now, it’s approximately 70,000, and we’ll determine the total amount later,” Maman elaborated.
