OJK Plans Rules For Increasing Financing Access To MSMEs

The Financial Services Authority (OJK) is working on a Draft OJK Regulation on Financing Access to Micro, Small and Medium Enterprises (RPOJK UMKM).

The preparation of the RPOJK aims to encourage credit or financing growth in the coming years, especially MSME financing and as mandated by Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (UU P2SK) to provide easy access to financing for MSMEs.

"The MSME RPOJK will later apply to non-bank financial banks and institutions (LKNB), and it is hoped that it can provide easy access to financing for MSMEs to be able to increase their business capacity," said OJK Banking Supervision Chief Executive Dian Ediana Rae quoting Antara.

Dian said that the MSME RPOJK will provide easy access for MSMEs in all financing stages carried out by banks and LKNB.

In the RPOJK, it will be arranged that the ease of access to MSME financing will be carried out through the determination of special policies, the preparation of special schemes, among others, through the preparation of a financing scheme to adjust the characteristics of the MSME business, as well as accelerating business processes in the distribution of MSME financing.

Furthermore, banks and LKNB can collaborate with each other or cooperate in providing easy access to financing to MSMEs.

Based on a study by Ernst and Young (EY) Indonesia, the funding requirement for MSMEs in 2026 will be recorded at IDR 4,300 trillion, but now it has only been accommodated at IDR 1,900 trillion, so there is a financing gap of IDR 2,400 trillion.

MSMEs play an important role in driving the wheels of the national economy. According to the Coordinating Ministry for Economic Affairs in 2023, the MSME sector contributed 61 percent of gross domestic product (GDP) or Rp9,580 trillion. Even the contribution of MSMEs to employment reached 97 percent of the total workforce.

Meanwhile, OJK noted that banking intermediation performance grew positively with a maintained risk profile. In November 2024, credit growth continued to double digits by 10.79 percent on an annual basis or year on year (yoy) to Rp7,717 trillion.

In addition, to encourage the digital ecosystem in financing MSMEs, banks and LKNB can take advantage of information technology.