Indonesia Launches Women's Credit Program With 8% Flat Interest Rate
Indonesia sets an 8% flat rate for a credit program targeting women from economically vulnerable families, with loans of up to Rp15 million.
The Indonesian government has introduced a credit program specifically for women from economically disadvantaged families, known as Kredit Perempuan Prasejahtera (KPPS). This scheme provides a flat interest rate of 8 percent per year, which is a significant reduction from the previous average rate of 24 percent. The program aims to offer productive financing to women who are already running or planning to start businesses, with loan amounts capped at Rp15 million ($925) per agreement.
The program targets women from economically vulnerable families who have a national identification number and family card, and are part of the lowest four deciles in socio-economic data. KPPS also includes provisions for business assistance, financial management education, and training to enhance entrepreneurial skills. The program is expected to benefit up to 9.16 million women running ultra-micro businesses across Indonesia.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
