Permenko 7/2026 Regulates the Credit Scheme for Women from Pre-Prosperous Families to Support Productive Businesses

Introduction

On 4 August 2026, the Coordinating Minister for Economic Affairs of the Republic of Indonesia enacted Regulation of the Coordinating Minister for Economic Affairs Number 7 of 2026 concerning Guidelines for the Implementation of Credit for Women from Pre-Prosperous Families (“Permenko 7/2026”), which came into force on 5 August 2026. Permenko 7/2026 was issued as a guideline for the provision of easy and affordable access to productive credit or financing for women from pre-prosperous families who already have businesses or who intend to start businesses. In the context of this financing policy, women from pre-prosperous families essentially refer to women from low-income communities who operate or intend to operate micro or ultra-micro businesses and face limited access to formal financing.

Key Provisions

• Criteria and Requirements for KPPS Recipients

As stipulated in Articles 3 and 4, Credit for Women from Pre-Prosperous Families (“KPPS”) is intended for women from pre-prosperous families who meet the individual requirements and are members of a group. The criteria and requirements are as follows:

 

• Obligation to Provide Empowerment Services by the Distributor

Article 4 paragraphs (2) and (3) affirm that KPPS recipient groups are required to participate in empowerment services organized by the KPPS Distributor as an integral part of this financing program. Such empowerment services must be implemented in the form of assistance through periodic visits by KPPS Distributor officers at least once every 2 (two) weeks. This assistance is focused on education regarding household and business financial management, entrepreneurship training and product capacity development, as well as close monitoring of business development and the recipient's repayment capacity.

• Qualification and Integration of KPPS Distributors

Pursuant to Article 6, entities legally permitted to operate as KPPS Distributors include Financial Institutions or Cooperatives having legal entity status. Distributors are required to satisfy eligibility requirements in the form of being in sound condition and performing well, and must have an electronic KPPS data system directly integrated with the Program Credit Information System (SIKP). The primary funding for KPPS distribution must be sourced entirely from the funds of the KPPS Distributor itself. To manage its risk profile, the Distributor may cooperate with a KPPS Guarantee or Insurance institution, the implementation of which must also be carried out through an integrated electronic system.

• KPPS Distribution

As stipulated in Articles 21 through 27, KPPS distribution is provided for the purpose of starting and/or developing businesses in certain productive sectors. The principal provisions regarding KPPS distribution are as follows:

Closing

Permenko 7/2026 provides an implementation framework for Credit for Women from Pre-Prosperous Families (“KPPS”) aimed at expanding access to productive financing for women from pre-prosperous families. The regulation covers recipient criteria, group formation, mandatory empowerment services, requirements for KPPS Distributors, as well as provisions concerning business sectors, financing ceilings, interest rates/margins, terms, and repayment mechanisms. With a maximum financing ceiling of Rp15,000,000 per agreement per KPPS Recipient and an interest rate/margin of 8% flat per annum, this scheme is expected to provide more affordable access to financing while supporting women in starting and developing business activities.