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🇮🇩 Indonesia /Elections & Politics

Indonesian Minister Proposes Housing Loans to Combat Loan Sharks

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesian Housing Minister Maruarar Sirait proposed housing loans as a solution to combat loan sharks.
  • He stated that the Housing Program Credit (KPP) could provide affordable financing for low-income communities.
  • The minister urged the Financial Services Authority (OJK) to facilitate easier access to financing and highlighted recent OJK improvements to the credit information system.

Indonesian Minister of Housing and Settlement Areas, Maruarar Sirait, has put forward housing loans as a potent strategy to eliminate loan sharks preying on low-income communities. He believes that the Housing Program Credit (KPP), a form of the People's Business Credit (KUR), can effectively address the financing gap that allows informal lenders to thrive.

There should no longer be opportunities for loan sharks to exist in Indonesia.

— Maruarar SiraitStating his goal to eradicate loan sharks through accessible housing finance.

"There should no longer be opportunities for loan sharks to exist in Indonesia," Sirait declared during the launch of the Financial Services Information System (SLIK) optimization event at the OJK office in Jakarta on Monday, July 6, 2026. He pointed out that micro, small, and medium-sized enterprises (MSMEs) could access housing loans up to Rp 100 million with a mere 0.5 percent interest and no collateral. This initiative aims to reduce MSMEs' reliance on loan sharks who charge exorbitant interest rates.

Sirait expressed his disappointment that a nation with many intelligent people and significant authority has struggled for decades to overcome the problem of loan sharks. He urged the OJK to develop accessible financing solutions for low-income individuals, emphasizing the need for official banking and non-banking products to offer ease, speed, and security to potential borrowers.

It is embarrassing that a nation this large, with so many intelligent people and so much authority, has not been able to defeat loan sharks for decades.

— Maruarar SiraitExpressing frustration over the persistent problem of loan sharks in Indonesia.

In response, the OJK has recently set a threshold for credit registration in SLIK starting from Rp 1 million. Furthermore, the reporting of fully repaid loans has been expedited from 1-1.5 months to a maximum of 3 days. Sirait acknowledged these changes as concrete evidence of the OJK's commitment to supporting the public and the "3 million houses" program, a flagship initiative of President Prabowo Subianto. As of June 23, 2026, the Ministry of Housing reported the construction of 81,286 units, with an additional 21,735 units having reached the credit agreement stage.

This is concrete proof of the OJK's bias towards the people, towards the 3 million houses program which we can all feel.

— Maruarar SiraitAcknowledging the OJK's recent improvements to the credit information system and financing accessibility.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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