Fasting Micro Credit, BI Governor Calls Banks Distributing MSME Loans Of Rp1,150 Trillion

Screenshot of Bank Indonesia Governor Perry Warjiyo during an Online Discussion in Jakarta, Sunday (25/07/2021). (ANTARA/Agatha Olivia)

JAKARTA - The government continues to promote the distribution of micro credit to the public. Until now, the Governor of Bank Indonesia (BI) Perry Warjiyo said the banking sector had disbursed loans amounting to Rp1,150 trillion to micro, small and medium enterprises (MSMEs).

"MSMEs are one of the pillars to encourage the Indonesian economy, including in economic recovery from COVID-19," Perry said in an online discussion in Jakarta, Sunday.

He explained that the amount of credit disbursed by banks to MSMEs is approximately 20.5 percent of the total bank credit, therefore MSMEs have succeeded in becoming one of the bank's supporters to channel financing.

"Of course, we still need to increase this number further," he said.

Perry said, MSMEs play an important role in the domestic economy, with a share of gross domestic product (GDP) of 57.1 percent or around IDR 7,304 trillion. The number of MSMEs is currently recorded at 65.5 million and has succeeded in absorbing 120 million workers or 96.6 percent.

He continued, MSME production so far has also succeeded in contributing to the performance of non-oil exports with a share of 15.7 percent or approximately US$339.2 billion per year.

Therefore, the potential of MSMEs in leveraging the economy must continue to be increased, especially through massive digitalization considering that COVID-19 has caused restrictions on mobilization.