OJK Encourages The Elimination Of MSME Congested Loans To Accelerate Financing Recovery

Chairman of the OJK Board of Commissioners Mahendra Siregar. (Photo: Doc. OJK)

JAKARTA - The Financial Services Authority (OJK) encourages the policy of removing bad credit for micro, small and medium enterprises (MSMEs) to be implemented again, because this step is considered important to accelerate the slow recovery of financing.

Chairman of the OJK Board of Commissioners Mahendra Siregar conveyed that the proposal had been submitted to the Coordinating Ministry for Economic Affairs.

Furthermore, the implementation mechanism will be formulated according to the targets to be achieved.

"We have conveyed to the government that the review can be seen, so that it can be extended and adjustments are also made," he told the media crew, Thursday, October 30.

This policy of eliminating bad credit is regulated in Government Regulation (PP) Number 47 of 2024 concerning the Elimination of bad debt loans to MSMEs in the Agriculture Sector of Livestock and Marine Plantations as well as other MSMEs.

Mahendra emphasized that if this program is continued, banks can immediately remove bad credit, so that the impact for MSMEs will be more significant.

"Yes, we will see this has the potential to be really more effective, it would be better to do it immediately," he explained.

Based on OJK data, it was recorded that bank MSME credit growth slowed until July 2025, only up 1.82 percent on an annual basis.

According to Mahendra, this slowdown was due to weak demand and economic conditions for the community which became the basis of the MSME segment.

"Indeed, the growth in terms of industry and demand and the economy in layers served by MSME groups has been lower than the average. But we have begun to see the recovery in the real sector related to the financing of MSMEs itself. We hope it can improve," he said.

Selain itu, Mahendra juga menyoroti masih adanya kredit macet di Bank Himbara dan Bank Pembangunan Daerah (BPD), yang menjadi hambatan bagi perluasan pembiayaan UMKM.

"Kedua, tadi ada elemen yang masih tersisa terkait dengan kondisi kinerja dari pembiayaan yang ada di berbagai bank, utamanya Himbara maupun BPD. Ini yang perlu dipulihkan dengan antara lain langkah melalui hapus buku, hapus tagih dari mereka yang masih ada dalam catatan di perbankan," jelas Mahendra.

In addition, Mahendra also highlighted the existence of bad credit at Himbara Bank and Regional Development Bank (BPD), which is an obstacle to expanding MSME financing.

"Second, there were still remaining elements related to the performance conditions of the financing in various banks, especially Himbara and BPD. This needs to be restored, among other things, by removing books, removing collections from those who are still in the banking records," Mahendra explained.