Indonesia Disburses Nearly Rp1,000tn for Small-Scale Economy, Says Minister

TEMPO.CO, Jakarta - Coordinating Minister for Food Affairs Zulkifli Hasan announced that the Indonesian government is disbursing almost Rp1,000 trillion to bolster the nation's small-scale economy.

"Pak Prabowo is allocating this enormous budget of nearly one thousand trillion for the small-scale economy," said the minister who is familiarly known as Zulhas during his speech at the National Entrepreneurship Day commemoration on Tuesday, June 10, 2025.

This substantial budget is earmarked for various programs, including the Red and White Village Cooperatives, People's Business Credit (KUR), and the Free Nutritious Meal (MBG) project.

Specifically, Rp250 trillion is allocated for the Red and White Village Cooperatives, approximately Rp300 trillion for KUR, and Rp171 trillion for MBG. Zulhas added that the budget for the MBG program is set to increase annually.

He highlighted this total funding as a historic first, noting that previously, government budgets primarily circulated within large banks, including Himbara, and were largely directed towards major corporations. "Most of the budget circulated among large groups, if not mistaken, around 20 large companies," he explained.

While a large portion of funds is now being disbursed to the lower economic classes, the management of funds for large entrepreneurs will be overseen by the financial institution Danantara. According to Zulhas, Danantara will manage funds sourced from the estimated profits of state-owned enterprises, which are projected to reach Rp200 trillion this year.

"Previously, the funds circulated for large entrepreneurs; now, they are being regulated for the smaller ones. The larger portion for state-owned enterprises will fall under Danantara's management," he concluded.

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