Bank Credit Grows 11.5%, MSME Financing Remains Key Challenge

The Financial Services Authority (OJK) has reported that the performance of the financial services sector, particularly banking, is quite sound. Chairperson of the OJK Board of Commissioners, Friderica Widyasari Dewi, revealed that credit growth reached a double-digit figure of 11.5%. According to her, coordination between members of the Financial System Stability Committee (KSSK), consisting of the Ministry of Finance, Bank Indonesia (BI), OJK, and the Indonesia Deposit Insurance Corporation (LPS), has been very solid in maintaining the financial services sector. “From the OJK’s perspective, several things relate to how credit is growing, bank credit grew 11.5%, that is around IDR 8,600 trillion,” Friderica stated after a meeting with Commission XI of the House of Representatives (DPR RI) in Jakarta. Beyond just growth, Friderica also emphasised that credit quality and banking resilience remain at safe levels. This is reflected in the maintained Non-Performing Loan (NPL) ratio. “It was also conveyed that the NPL is maintained,” she said. Nevertheless, the official, who is familiarly known as Kiki, admitted that challenges and homework remain, particularly those questioned by Commission XI regarding access to financing for Micro, Small, and Medium Enterprises (MSMEs). Kiki noted that the DPR RI highlighted the extent to which the impact of this credit growth is felt by small business actors. “Earlier, members of Commission XI raised many questions about MSME credit. So this is homework for all of us on how MSME credit can grow, and regarding support for MSMEs,” she mentioned. Kiki added that the OJK will continue to push strategic programmes to deepen the financial market and expand the reach of credit for MSMEs. “The programmes we are conveying include, for example, market deepening,” she concluded.