MSMEs That Get Financing From Banks Are Still Small, Here's The Proof

Photo illustration - One of the MSMEs in Indonesia. BETWEEN/ (Kemenparekraf Public Relations)

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) said the ratio of MSME loans to total bank loans was still small. Currently, the figure is still around 20.95 percent or IDR 1,540 trillion in credit value given to MSMEs.

"With a distribution of credit to micro-enterprises of 45.36 percent, small businesses of 31.58 percent and medium-sized businesses 23.06 percent," said Assistant Deputy for Financing and Investment at the Ministry of Cooperatives and SMEs Ali Manshur in a written statement, Saturday, September 14.

Ali explained, based on a Bank Indonesia (BI) survey, currently there are 69.5 percent of MSMEs that have not received credit. Of this amount, 43.1 percent of MSMEs admit that they need financing from banks. Thus, there are still many MSMEs that need funding.

This condition causes the financial gap of MSMEs in Indonesia to reach IDR 1.6 trillion because it has not been able to reach financing support from banks and other financial institutions.

"We continue to strive to increase access to financing through studies of new financing schemes and assistance to SMEs who are expected to reduce the financial gap of MSMEs," he said.

According to Ali, his party is currently conducting various studies related to the new financing scheme to support increasing access to financing for SMEs, especially for business actors providing government goods/services and financing supply chains.

"This financing scheme is expected to expand access to capital, so as to be able to encourage the growth and sustainability of SMEs," he added.