The Financial Services Authority (OJK) is drafting a regulation to increase access to credit or financing for micro, small, and medium enterprises (MSMEs) to boost credit or financing growth in the coming years, according to reporting from Antara News.
“The draft regulation will apply to banks and non-bank institutions and is expected to ease financing access for MSMEs, enabling them to improve their business capacity,” said Dian Ediana Rae, OJK Executive Head for Banking Supervision, on Sunday (26/1/25,) noting that the draft regulation will ease access for MSMEs at all stages of financing from banks and non-bank institutions.
The regulation will ensure easier access to MSME financing by implementing special policies, preparing tailored financing schemes based on MSME business characteristics, and streamlining financing processes.
Furthermore, banks and non-bank institutions can collaborate to ease financing access for MSMEs.
Antara News reports that a study by Ernst and Young (EY) estimates that MSMEs’ financing needs will reach IDR 4,300 trillion (approximately USD 265.91 billion) in 2026. However, only IDR 1,900 trillion is currently appropriated.
MSMEs play a key role in driving Indonesia’s economy. According to the Coordinating Ministry for Economic Affairs, MSMEs contributed 61 percent to GDP (IDR 9,580 trillion) and 97 percent to job absorption in 2023.
The OJK reported positive growth in banking intermediation performance, supported by a well-managed risk profile.
In November 2024, credits grew by 10.79 percent year-over-year to IDR 7,717 trillion.
Source: Antara News
Stock photo by RDNE Stock project on Pexels
