Boosting Competitiveness: How Regional Development Banks Strengthen Indonesian MSMEs
A number of Regional Development Banks (BPD) remain committed to strengthening Micro, Small and Medium Enterprises (MSMEs) so they can move up a class and improve their competitiveness. This is not without reason, as MSMEs are still considered one of the pillars of economic growth in various regions, for example in Bali.
Director of Operations of PT Bank Pembangunan Daerah Bali (Bank BPD Bali), I Komang Wiratna Jaya, said that his party will continue to provide assistance, including providing learning related to financial management so that MSMEs in Bali can move up a class.
“The challenge for MSMEs is that they still manage finances conventionally. Not to mention that their business finances are still mixed with daily life. Therefore, we assist them according to their working areas,” Komang said at the Regional Bank Summit 2026 Batch 2 with the theme “BPD Strategy to Encourage Regional Economic Independence”, Friday (28/8/2026).
Komang further said that Bank BPD Bali seriously supports the expansion of the MSME market, including participating in exhibitions, and providing an MSME corner in every branch office.
In addition, Bank BPD Bali also continues to support financial literacy, including various banking products, and the potential that MSMEs can use.
“From the BPD Bali side, we continue to develop financing products according to the needs of MSMEs, including with interest rates that are expected not to be too far from the interest rates provided by the government for MSMEs,” Komang detailed.
Similar to BPD Bali, Bank Lampung or the Regional Development Bank of Lampung also supports MSMEs in Indonesia to move up a class. One way is by increasing the portion of financing to productive sectors such as MSMEs.
President Director of Bank Lampung Indra Merviana explained that this effort is being made considering that the mix of productive credit is currently still low.
“Today we still rely on deposits. We are increasing current accounts and savings, so that we can make credit interest rates competitive for MSMEs. In addition, we are also completing the institutional strengthening agenda, building digital capabilities and reliable human resources to support MSMEs to grow further,” Indra detailed.
Indra explained that currently credit distribution is still dominated by the consumptive segment with a portion reaching 73% and the productive segment has only reached 27%.
“That is our homework. We are shifting towards productive. We are preparing for KUR in the micro segment, commercial working models, also MSMEs, including supply chain financing,” he said.
Meanwhile, the sectors that BPD Lampung will target are agriculture and the rest for the trade sector. According to him, the agricultural sector is a work programme of the governor and regional government.
“For the sector, the highest according to the work programme of the governor and regional government is agriculture, which has reached almost 30%, 28%,” Indra explained.
Indra said that the MSME sector in Lampung still has resilience and flexibility amidst various economic challenges. He gave examples of these MSMEs, including cassava processing, coffee, corn, fisheries, and trade in basic necessities.
“So the demand is relatively stable. Whatever the economic conditions, they can still survive the cycle,” he stressed.