“This micro housing financing initiative is an effort to ease, accelerate, and assist the community in accessing housing financing and to protect them from loan sharks. Loan sharks cannot defeat the state. Let us unite to combat them," Ara noted in Jakarta on Monday.
The minister observed that many people are currently ensnared by the attractive offers of loan sharks, who lend money at extremely high interest rates, creating a heavy burden for borrowers.
One prominent example is in Majalengka District, West Java, where people fall victim to loan sharks commonly known as “bank emok.”
“Many people prefer to borrow from loan sharks despite the high interest rates. The government must not let this continue by formulating pro-people policies and programs,” Ara stressed.
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“Bank emok” refers to informal group lending practices that are not legally regulated. This issue has drawn the government’s attention, especially President Prabowo Subianto, who is keen that the Ministry of PKP synergizes with other ministries and agencies to implement widespread pro-people government programs that are well-publicized to reach the broader community.
On Pancasila Day, June 1, 2025, Ara launched the program for financing micro housing in Majalengka.
This housing financing initiative is a collaboration between the Ministry of PKP, PT Sarana Multigriya Finansial (Persero), BP Tapera, Permodalan Nasional Madani (PNM), Bank BJB, and the Majalengka local government. It is part of the commitment to fight loan sharks and supports the government’s target to build three million homes, especially for low-income communities (MBR).
The minister also urged PNM and Bank BJB to continue assisting communities in avoiding loan sharks by creating innovative financing solutions.
“In the future, PNM will expedite loan disbursement processes to within two days at an interest rate of 1.5 percent per month. Additionally, Bank BJB will develop programs to provide alternatives for people so they no longer have to borrow from loan sharks whose interest rates can reach up to 30 percent per month,” Ara remarked.
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Translator: Aji, Azis Kurmala
Editor: Rahmad Nasution
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