Prabowo Will Erase The Debts Of 6 Million Farmers And Fishermen

Friday, 25 Oct 2024

By ridwan@insightinnews.com

The Chairman of the Advisory Board of the Indonesian Chamber of Commerce and Industry (Kadin), Hashim Djojohadikusumo, who is also the younger brother of President Prabowo Subianto, announced that the government is currently preparing a Presidential Regulation (Perpres) aimed at the forgiveness of debts owed by millions of farmers and fishermen.

It is anticipated that this regulation will soon be signed by President Prabowo Subianto. "I would like to convey this information. It is likely to be signed next week. It turns out that there are millions of our farmers and fishermen still burdened by old debts, including debts from the 1998 monetary crisis and those from 2008. Approximately 5-6 million farmers and fishermen are affected by these old debts," Hashim stated during a discussion at the Kadin Indonesia Tower in South Jakarta on Wednesday, October 23, 2024.

"They are now forced to refrain from borrowing from banks, as they are rejected every time they enter the Financial Information Service System (SLIK) at the OJK. Why? Because of debts amounting to IDR 10 million, IDR 15 million, or IDR 20 million," he explained. Hashim further noted that all debts of these farmers and fishermen have long been written off and frozen by banks; however, the banks' claims have not been eliminated.

As a result, the 5-6 million farmers with old debts are currently unable to secure bank loans.

"They cannot obtain credit, so where do they turn? To loan sharks and online lenders. I previously mentioned to Mr. Prabowo that this situation needs to be changed. This was recorded last year. Mr. Prabowo agreed," Hashim clarified. "When the banking team was called in, we asked the economic team whether this would harm the Indonesian banking sector. Ultimately, it was stated that it would not, as the debts had already been written off. There is nothing left.

However, the claims remain, which forces these 5-6 million individuals to resort to online loans and loan sharks," he added. In light of this situation, Hashim indicated that Minister of Law Supratman Andi Atgas is currently drafting the presidential regulation for the forgiveness of the old debts of farmers and fishermen, with the aim of allowing them to regain access to bank loans.

It is anticipated that next week, Mr. Prabowo will sign a presidential regulation regarding debt forgiveness. This initiative has been prepared by Mr. Suprataman, the Minister of Law, and is fully compliant with existing legislation. I hope that within the coming weeks, specifically next week, he will finalize the signing of this regulation, as stated by Hashim.

This measure is expected to provide a fresh start for approximately 5 to 6 million individuals and their families, granting them the opportunity to access loans from banks once again. Their status in the Financial Information System (SLIK) will not be adversely affected by the Financial Services Authority (OJK). This initiative is a significant step in the strategy to alleviate poverty, potentially benefiting around 30 to 40 million people, including spouses and children of the debtors.

In addition to the ability to secure loans from banks, farmers and fishermen will be protected from predatory lending practices. They will have the option to borrow from banks rather than relying on loan sharks or online lending platforms. We have verified this possibility with Himbara. The debt relief initiative has also been developed following consultations between Prabowo and his economic team. Hashim emphasized that this debt forgiveness will not disrupt the banking ecosystem in Indonesia.

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