JAKARTA – President Prabowo Subianto has launched a debt amnesty policy for MSMEs, farmers, and fishermen to strengthen the people’s economy.
This is considered a concrete step that eases the financial burden of the lower class, which has been affected by the weak economic conditions. President Prabowo’s commitment has a positive impact on economic recovery and increased productivity, especially in productive sectors.
An economic expert from the University of Muhammadiyah Surabaya, Arin Setyowati, said that this step can help the productive sector which has been burdened by debt payment obligations. Based on BPS data, there are around 27.3 million farming households, around 2.7 million fishermen, and 66 million MSMEs in Indonesia.
According to him, this policy will increase economic activity and household consumption, which can ultimately drive national economic growth.
“This policy has a positive impact by reducing the financial burden and increasing economic productivity. By freeing MSMEs, farmers, and fishermen from the obligation to pay debts, they can focus more on developing their businesses,” said Arin.
It was added that the policy also contributed to GDP growth and increased employment, while also reducing the risk of bad debts or Non-Performing Loans (NPL) in the banking sector.
Similarly, the Executive Director of the Indonesia Political Review (IPR), Ujang Komarudin, assessed that the policy reflected President Prabowo’s commitment to realizing an economy that favors the people. This step is a form of effort to get out of the economic domination by a handful of elites, politicians, and oligarchs.
“President Prabowo wants to free the economic sector from the grip of the oligarchy, restore the welfare of the people,” said Ujang.
Meanwhile, the Executive Director of the Indonesia Public Policy and Economics Studies (IPPES), M. Zulfikar Dachlan, stated that the policy was highly anticipated, especially by the micro business sector which is vulnerable to bad debts.
Based on data from the Ministry of Cooperatives and SMEs, SMEs contribute 61 percent to GDP, and absorb 117 million workers. The debt cancellation policy is expected to accelerate national economic recovery and strengthen Indonesia’s economic competitiveness at the global level.
“The elimination of bad debts provides room for SMEs, farmers, and fishermen to increase productivity again. Meanwhile, the debt cancellation policy is considered capable of strengthening Indonesia’s economic competitiveness at the global level,” concluded Zulfikar.