AFPI Says MSMEs Need Funding Of IDR 4,300 Trillion In 2026

JAKARTA - The Indonesian Joint Funding Fintech Association (AFPI) said that the funding needed by MSMEs in Indonesia could reach IDR 4,300 trillion in 2026. This is based on a study conducted with EY Pathernon.

"With the existing supply capability of only Rp. 1,900 trillion, it means that there is a gap of Rp. 2,400 trillion. At the same time, demand for funding will continue to grow on an annual basis of around seven percent," said AFPI Secretary General Sunu Widyatmoko quoting Antara.

Sunu highlighted that this need is inversely proportional to the financing side, namely the increasing gap in credit needs (gap credit) because the existing financing supply conditions remain the same.

This is because MSMEs and start-ups in Indonesia are growing rapidly due to the influence of digital technology which opens up wide space for entrepreneurs to be involved in the nation's economy. So that the needs also increase every year.

According to him, this is quite surprising, because based on a report issued by the World Bank's International Financing Corporation (IFC) in 2018, the gap in credit needs in MSMEs was initially estimated at only Rp. 1,600 trillion.

"We think because fintech has been operating since 2017, we think that number will decrease. But after we conducted a study with EY Pathernon, the indication is that it is not decreasing, but even higher," he said.

On the other hand, Sunu stated that fintech lending has tried to meet the needs of MSME actors. One of them is by increasing the distribution of funding, especially to reach the undeserved and unbanked sectors.

He explained that the flow of fintech lending in the digital ecosystem will provide more optimal funding solutions for MSMEs with a wider and more sustainable research.

In the process, AFPI hopes that these efforts can help MSMEs enter the digital ecosystem and take advantage of access to funding from fintech. Thus, the gap can get smaller and be able to encourage 30 million MSMEs on digital boarding or go digital in 2024.

"That's why we are working with the Ministry of Cooperatives. This is to work together, the Minister of Cooperatives and SMEs said earlier that 40 percent of what is given a loan by fintech lending is an auto pilot approach. There is no approach to digitalizing so that the risk profile shrinks all kinds. I said sir, if we want to go to Indonesia Gold 2045, let's go together," he said.