{
    "success": true,
    "data": {
        "id": 1581680,
        "msgid": "flood-of-illegal-goods-from-china-exacerbates-umkm-credit-defaults-1772452877",
        "date": "2026-03-02 17:55:06",
        "title": "Flood of Illegal Goods from China Exacerbates UMKM Credit Defaults",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Social Policy",
        "summary": "Indonesia's Minister of Micro, Small and Medium Enterprises (UMKM), Maman Abdurahman, has attributed rising non-performing loan (NPL) rates in the UMKM sector to an influx of illegal imports from China, which prevents small business owners from selling their goods and repaying loans. The UMKM NPL ratio reached 4.6% in January 2026, significantly above the banking industry average of 2%, and the government plans to coordinate with relevant institutions to curb illegal imports and support market stability.",
        "content": "<p>Jakarta, CNBC Indonesia \u2014 The Minister of Micro, Small and Medium\nEnterprises (UMKM), Maman Abdurahman, has attributed the poor credit\nquality in the UMKM segment to a flood of illegal imported goods from\nChina.<\/p>\n<p>This situation prevents UMKM debtors from selling their merchandise,\nwhich ultimately hampers their ability to repay loans. This is reflected\nin the ratio of problem loans or non-performing loans (NPL).<\/p>\n<p>\u201cWhy can NPL be so high? Because the UMKM entrepreneurs who gained\naccess to financing are unable to sell their goods. Because the market\nis flooded with imported goods from China that are incredibly cheap, and\nthe prices don\u2019t make sense,\u201d said Maman following the Indonesia Economy\nOutlook event at CNN Indonesia, Bank Mega Tower, Monday (2 March\n2026).<\/p>\n<p>He stated that his ministry intends to sterilise the market from the\nflood of illegal imports from China by coordinating with relevant\ninstitutions. According to data he possesses, the gap between exports to\nChina and imports from China is substantial.<\/p>\n<p>\u201cSo this is what we want to raise and coordinate with several\nrelevant institutions. Because this problem is no longer just a simple\nmatter; the impact from this market is muddy, flooded with illegal\nimports, and as a result our UMKM entrepreneurs, who have already\nreceived financing top-ups, assistance, stimulus and incentives of all\nkinds, are unable to sell their goods,\u201d Maman explained.<\/p>\n<p>Furthermore, this situation has an impact on loan defaults, which\nultimately creates social problems for UMKM debtors.<\/p>\n<p>\u201cSo this is what we want to protect as well, which is why I always\nsay that if you want to look at UMKM, you cannot only look at one side;\nyou have to look at it from upstream to downstream. Because even if the\nupstream side is good, but if the downstream side is not good, these are\ninterconnected. That is why NPL becomes high,\u201d Maman clarified.<\/p>\n<p>For information, credit quality in the banking sector\u2019s UMKM segment\nhas deteriorated further at the start of this year. Bank Indonesia (BI)\nrecorded UMKM NPL at 4.6% as of January 2026, an increase from December\n2025 at 4.33%.<\/p>\n<p>This figure is well above average. The banking industry\u2019s NPL rate\nstands at approximately 2%.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/flood-of-illegal-goods-from-china-exacerbates-umkm-credit-defaults-1772452877",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}