Praise From Menko Airlangga For Ojk And Banks That Support UMKM Financing

Illustration (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto appreciated the support of the Financial Services Authority (OJK) and banks in helping save MSMEs and the informal sector during the pandemic.

According to Airlangga, one of the main challenges for the recovery of MSMEs and the informal sector at this time is access to finance.

“The success of this program cannot be separated from the support provided by OJK and banks. We appreciate the OJK and banks for their support in accelerating the national economic recovery, especially for MSMEs and the informal sector," he said in a press statement quoted on Monday, September 13.

Airlangga added, access to financing for MSMEs is considered very crucial to support the business activities of business actors. To note, according to the provisions contained in Bank Indonesia Regulation Number 17 of 2015, the portion of MSME loans has been prepared at 20 percent.

“This limited access to financing needs to be addressed immediately so that it can help MSMEs and the informal sector to survive during the pandemic. Therefore, the government targets MSME credit obligations in the banking sector to be at least 30 percent of the total lending in 2024," he said.

Furthermore, in order to achieve this target, an additional MSME loan of IDR 980 trillion is needed, with the position of MSME credit reaching IDR 2,000 trillion in 2024.

"Rescuing MSMEs and the informal sector will provide great support for economic recovery," he said.

In addition, strengthening the basis of micro and small business actors will also be carried out in order to accelerate the recovery of the national economy.

For information, until the end of the second semester of 2021, the fund placement program has succeeded in disbursing loans of Rp406.64 trillion through Himbara banks, Islamic banks, and BPD. In addition, the total outstanding credit restructuring reached Rp777.31 trillion.

"Good coordination and synergy will increase access to financing for MSMEs and the informal sector so that they can maintain business continuity and move the economy even faster," Airlangga concluded.