BI Strengthens MSMEs and Productive Loans to Boost Economic Growth

Bank Indonesia (Photo: VOI)

Bank Indonesia (BI) continues to optimize the mix of policies to maintain macroeconomic stability while strengthening national economic growth and this is done through the development of micro, small, and medium enterprises (MSMEs) and accelerating the distribution of credit to productive sectors.

Head of the Communication Department of Bank Indonesia, Ramdan Denny Prakoso, said that MSMEs have a strategic role as drivers of the economy as well as labor absorption, so BI continues to strengthen various empowerment programs so that MSMEs are more competitive and have higher competitiveness.

Throughout 2025, the turnover of MSMEs built by Bank Indonesia was recorded at Rp. 7.02 trillion or increased by 23.1 percent compared to the previous year. This growth is supported by the performance of export-oriented MSMEs which increased by 21 percent and digital-based MSMEs which grew by 25 percent.

"This achievement is expected to continue to grow in line with the implementation of the Integrated MSME Entrepreneurship Transformation Program," he said in a statement, Wednesday, July 8.

Denny said that in 2026, BI targets a number of strategic programs to strengthen the MSME ecosystem, including printing 400 internationally certified baristas, producing 50 textile product innovations, building 200 boarding schools that produce bottled drinking water, and developing 10 boarding schools with integrated agricultural systems.

According to him, these various programs are designed to increase entrepreneurship capacity, increase the added value of MSMEs products, strengthen competitiveness, open new jobs, and increase the contribution of MSMEs to inclusive and sustainable economic growth.

On the other hand, Denny said Bank Indonesia also continues to encourage an increase in credit distribution through synergy with the government, related authorities, the banking industry, and the business world.

He said this step was strengthened through the implementation of the Macroprudential Liquidity Incentive Policy (KLM) which aims to increase the intermediation function of the banking sector so that financing to the productive sector can continue to grow.

Denny said the effectiveness of the policy was reflected in the growth of bank credit which reached 11.51 percent on an annual basis in May 2026, higher than the growth of 9.69 percent at the end of 2025.

He assessed that the increase in the distribution of credit to the productive sector would strengthen business activities as well as support national economic growth.

Looking ahead, Denny said Bank Indonesia emphasized that it would continue to optimize the mix of policies and strengthen coordination with the government and all stakeholders to maintain economic stability, encourage sustainable growth, and create more jobs.