BI Acting Governor highlights sluggish MSME lending, urges banks to boost credit
Jakarta (ANTARA) - Bank Indonesia (BI) Acting Governor Destry Damayanti has highlighted the still-sluggish growth of lending to micro, small and medium enterprises (MSMEs), while urging banks to increase credit disbursement to the segment.
“So, MSMEs have only grown 1.62 percent. This really is homework for us,” Destry said at the opening of the 2026 Karya Kreatif Indonesia (KKI) event in Jakarta on Thursday.
On the occasion, Destry also highlighted the strategic role of MSMEs as a pillar of the nation’s economy, reflected in the number of players reaching 64 million, absorbing 97 percent of the workforce, and contributing more than 60 percent to the national gross domestic product (GDP).
“However, we must acknowledge the fact that MSME lending is currently homework for all of us,” she said.
As of June 2026, MSME lending was recorded at 1.05 percent year-on-year (yoy), up from 0.60 percent (yoy) in the previous month, based on data from the Financial Services Authority (OJK).
Overall, bank lending in July 2026 grew 13.58 percent (yoy), up from 12.6 percent (yoy) in June 2026.
Destry stressed that Bank Indonesia will continue to strengthen synergy with various parties so that MSMEs can move up the value chain while continuing to absorb employment optimally.
She added that the strategic role of MSMEs further reinforces Bank Indonesia’s mandate to strengthen Indonesia’s economic sovereignty and promote inclusive and equitable growth.
As mandated by Law Number 4 of 2026 on the Development and Strengthening of the Financial Sector (UU P2SK), Bank Indonesia’s policy mix is carried out to create a conducive economic environment for real sector growth and job creation.
“Bank Indonesia will continue to be committed to developing MSMEs through a policy framework supported by three main strategies implemented across all 46 Bank Indonesia domestic representative offices and 5 overseas representative offices,” Destry said.
She explained that the three main strategies cover an integrated and competitive inclusive economy, inclusive financing and sustainable finance, as well as broad-based inclusive and sustainable economic-financial literacy and synergy.
These strategies are realised through strengthening business capacity and scale, expanding market access and financing, and accelerating digitalisation.
Bank Indonesia itself is organising Karya Kreatif Indonesia (KKI) 2026, which is attended by more than 550 MSMEs at the Jakarta International Convention Centre (JICC). In addition, KKI is also held online through the platform www.karyakreatifindonesia.co.id involving more than 1,300 MSMEs.
According to BI, this number increased compared to the 2025 KKI, which was attended by 362 MSMEs offline and more than 1,100 MSMEs online.
The event, held on 20-23 August 2026, features 44 series of activities, including business matching for financing, exports and value chains, among others.
KKI 2026 showcases a variety of curated MSME products, ranging from traditional textiles, ready-to-wear fashion, accessories, home decor, coffee, processed food and beverages, to tourism village attractions.
In its 11th edition, KKI presents five new aspects, including programmes with real impact through Cangkir Barista and Citra Nusa, expanded collaboration, strengthening of the value chain ecosystem, youth innovation for local products, and the application of sustainability principles through KKI Bijak (zero emission and zero waste to landfill) and the development of green zones.
Through the theme “BeudayaMeusareSare” from Aceh, this year’s KKI is also an effort to encourage the revival of MSMEs in the regions of Sumatra and East Nusa Tenggara (NTT) affected by natural disasters.