Jakarta. President Prabowo Subianto has urged Indonesia’s state-owned banks to focus not only on profitability but also on expanding access to financing and delivering tangible benefits to the public, particularly small businesses.

Speaking to commissioners and executives of Indonesia’s state banking group, known as Himbara, at the Presidential Palace on Thursday, Prabowo said the banks play a strategic role in shaping the country's economic development and should support more inclusive growth. The meeting was attended by leaders of major state-controlled lenders, including Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Syariah Indonesia, and Bank Tabungan Negara.

According to Danantara Indonesia CEO Rosan Roeslani, who attended the meeting, Prabowo stressed that state-owned banks must ensure equal access to financing across all segments of the economy, from micro, small, and medium-sized enterprises (MSMEs) to commercial businesses and large corporations.

"The president said banks should not focus solely on profits. Their presence must be felt by the public through equal opportunities for financing across all levels of society," Rosan told reporters after the meeting.

Prabowo also called for stronger support for MSMEs, arguing that smaller businesses should not face higher borrowing costs than large corporations.

Indonesia is home to more than 65 million active MSMEs, which account for about 99% of all business entities, contribute roughly 61% of gross domestic product, and employ around 97% of the workforce. The sector is widely viewed as the backbone of Southeast Asia's largest economy.

According to Rosan, the president said lending rates for MSMEs should be aligned with — or even lower than — those offered to large corporate borrowers to help strengthen the sector's competitiveness and growth.

"The president's view is that small and medium-sized businesses, which directly impact people's livelihoods, should not be burdened with higher interest rates than large corporations," Rosan said.

The remarks come as Prabowo's administration seeks to accelerate economic growth while broadening financial inclusion. Despite progress in recent years, many micro and small enterprises remain underserved by the formal financial sector, particularly in rural and eastern Indonesia, where access to banking services and credit remains limited.

State-owned banks play a central role in the government's efforts to close that financing gap through the People's Business Credit (KUR) program. National KUR disbursements reached Rp 270 trillion ($15.15 billion) in 2025, equivalent to about 96%t of the government's Rp 280 trillion target, benefiting 4.58 million borrowers through Himbara banks and other financial institutions. The loans carry a subsidized interest rate of 5% annually.

For 2026, the government has increased the KUR allocation to Rp 308.41 trillion, reflecting its push to expand affordable financing for small businesses and entrepreneurs.

Rosan also highlighted the significance of Himbara within Indonesia's financial system. The combined market capitalization of the five state-owned banks stands at around Rp 1,100 trillion ($67 billion), equivalent to roughly 10%t of the total value of Indonesia's stock market.

Given their size and influence, Prabowo urged state lenders to uphold prudent banking practices and professional management standards while supporting government development priorities.

"The president stressed that everything must be carried out professionally and prudently, and that the benefits of Himbara's presence should be felt by all Indonesians through equal opportunities," Rosan said.

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