Governor Ganjar's Low Interest offers, Critics and Motivation

Governor of central java province, ganjar pranowo together with bank of central java offers the low interest credit. There are two types of central java bank products given: mitra 25 and mitra 02.
Mitra 25 will be given to enlarge the business scale of the medium and small enterprise with the rate offered 7% per year while mitra 02 is given for the beginner entrepreneur for small scale with the rate offered 2% for year.

This is intended to push the business community in central java province. It is meant to allow the movement of regions economy growing faster likewise as the further real action of the call of president jokowi to lower the credit rate up to 7%, ganjar said.
Even mitra 02 is offered free without rate. Nevertheless, 2% rate is to give responsibility sense of the customer, he added.

The lowering rate of credit in central java province will boost the proliferation of micro and small enterprises. The central java bank( Bank jawa tengah) regions owned enterprise denied the fact that the low credit offer is a threat for the continuity of rural banks which still offer high rates. The rural banks are afraid of bankruptcy since the customers will prefer to submit and take credits from central java bank.

Regarding the decision of ganjar pranowo to lower the interest rate, there are critics coming upon him saying that this is simply an imaging strategy.
However, governor of central java defended that it's simply meant to recur independence of economy especially for small and medium enterprises. There are alot of people want to start business yet encounter problem credits due to high interest offered and complicated procedure. For those who intend to enlarge their business scale, mitra 25  will offer platform of credit up to Rp 25 million while for the beginner is offered mitra 02 up to Rp 2 million credit limit.

Ganjar expects that this model will be a prototype to be imitated by other provinces. As for now each region in central java is budgeted Rp 10 billion for low interest rate program.