Regarding MSME Financing, OJK Prepares Incentives For Financial Institutions

OJK (photo: dock. Antara)

JAKARTA - Head of the Ministry of Banking Regulation and Development of the Financial Services Authority (OJK) Indah Iramadhini stated that his party had prepared a number of incentives for financial institutions to facilitate the distribution of financing for MSMEs.

He conveyed the incentive contained in the Financial Services Authority Regulation (POJK) Number 19 of 2025 concerning Ease of Access to Financing for Micro, Small, and Medium Enterprises (MSMEs) in the form of relaxation of a number of operational requirements.

"For commercial banks, for example, we have incentives, there is a relaxation of the requirements for the instant approval (fast credit application process)," said Indah Iramadhini quoting Antara.

He said the requirements for instant approval for commercial banks include getting ranked 1 or 2 in the last Quality Implementation of Risk Management (KPMR) assessment; get ranked 1 or 2 in the last Good Corporate Governance (GCG) assessment; and have adequate information technology infrastructure and management.

Meanwhile, commercial banks that distribute MSME financing are only required to meet the latest requirements, namely related to information technology infrastructure.

Likewise, the People's Economy Bank (BPR) and Sharia BPR have the obligation to process permits that usually take 30 working days by including business target documents or financial projections for a minimum of 12 months and proof of operational readiness.

Indah said that the relaxation for the two financial institutions was the acceleration of the licensing process for the distribution of funds to MSMEs to 10 working days and simplification of permit application documents only conveyed proof of operational readiness.

He said that his party could also provide relaxation of certain requirements for business activities of Non-Bank Financial Institutions (LKNB) that support the MSME sector, such as the exception of a minimum equity requirement of IDR 200 billion.

Meanwhile, financial service institutions that do not comply with the POJK will receive administrative sanctions from the OJK in the form of written warnings or written warnings; prohibition on issuing products or carrying out new activities; restrictions on business activities; freezing of certain business activities; to decreasing the results of the assessment of the health level of financial institutions.

"This sanction can also be applied from a written warning, which is the lightest supervisory measure, to restrictions on business activities," said Indah.