Jakarta. President Prabowo Subianto is preparing to issue a Presidential Regulation (Perpres) to forgive the debts of millions of farmers and fishermen to improve their access to credit.

Hashim Djojohadikusumo, Chairman of the Advisory Board of the Indonesian Chamber of Commerce (Kadin) and younger brother of President Prabowo, revealed that approximately 6 million farmers and fishermen are burdened by old debts, many of which date back to the financial crises of 1998 and 2008.

These debts, ranging from Rp 10 million ($640) to Rp 20 million, have hindered their ability to secure loans from banks. Applications through the Financial Information Service System (SLIK) of the OJK are consistently rejected due to outstanding debts, forcing them to seek riskier loans from alternative sources like loan sharks.

“There are millions still trapped in these old debts," Hashim said during a discussion at the Kadin Indonesia Tower in Jakarta on Wednesday.

Although some debts have been technically written off, banks retain the right to claim repayment, which blocks these individuals from obtaining new loans. Hashim mentioned that he discussed this issue with President Prabowo, who agreed to initiate changes.

The Law Ministry is currently drafting the debt forgiveness regulation, expected to be signed by President Prabowo soon. This initiative aims to help farmers, fishermen, and MSMEs access bank loans, ultimately boosting their businesses and contributing to the economy.

“Everything is ready and aligned with the law. I hope President Prabowo will sign the regulation next week,” Hashim added.