TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsOJK projects MSME loans to expand 9% this year
Micro, small and medium enterprise (MSME) loans contracted by 0.53 percent year-on-year (yoy) in January to Rp 1,482.9 trillion, amid “global and domestic economic dynamics” and a slower post-pandemic recovery.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A buyer pays his bill using a Quick Response Indonesia Standard (QRIS) code on Feb. 6, 2021, at a street food stall on Jl. Ampera Raya in South Jakarta. Bank Indonesia estimated 12 million micro, small and medium enterprises (MSMEs) would shift to the cashless payment method in 2021. (Antara/Reno Esnir)
T
he Financial Services Authority (OJK) has projected micro, small and medium enterprise (MSME) credit to grow between 7 percent and 9 percent year-on-year (yoy) this year, following a moderation at the start of the year.
Lending to the sector is expected to rebound on the back of improving consumer confidence, stronger economic prospects and the expansion of financing policies.
OJK banking supervision chief Dian Ediana Rae said on Tuesday that the authority aims to continue encouraging broader, easier and more inclusive access to financing for MSMEs, which will become one of the main pillars in maintaining financial system stability and supporting sustainable economic growth.
The agency’s data show that MSME credit outstanding stood at Rp 1,482.9 trillion (US$87.7 billion) in January, equivalent to around 17.33 percent of total lending by the country’s banks, but contracted by 0.53 percent compared to the same period last year.
According to Dian, the slowdown partly reflected global and domestic economic dynamics, as well as the relatively slower recovery of the MSME sector following the COVID-19 pandemic compared with the corporate sector.
Despite the short-term challenges, the banking industry remains optimistic that MSME lending will recover this year, supported by improving consumer sentiment.
OJK noted that the Consumer Confidence Index (IKK) at the beginning of 2026 stood at a positive level of 127, while the Consumer Price Index reached 109.75.
