Credit to MSMEs Reaches Only 19.4 Per Cent, Falls Short of RPJMN Target

Jakarta — Indonesia’s Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman disclosed that the disbursement of bank credit to the MSME sector outside the People’s Business Credit (KUR) programme in 2025 reached only 19.4 per cent of total national credit. This figure is considered far short of the government’s target of 25 per cent as outlined in the 2025–2029 National Medium-Term Development Plan (RPJMN).

From total bank credit allocation of Rp8.149 trillion in 2025, credit flowing to MSMEs amounted to approximately Rp1.580 trillion. This means there remains a gap of about 6 per cent, equivalent to hundreds of trillions of rupiah, from the Rp2.100 trillion target.

“The realisation is only 19.4 per cent, meaning we still have around 6 per cent that we have not been able to meet,” Maman said during a media discussion at the MSME Journalists Forum in Jakarta on Friday (28 February 2026).

Meanwhile, Rp6.569 trillion, or 80.6 per cent of bank credit, actually flowed to approximately 50 large corporations. This situation demonstrates financing distribution inequality amid the government’s efforts to strengthen MSMEs’ role as the backbone of the national economy.

Maman affirmed that evaluation of credit disbursement outside KUR will become a government priority so that financing truly encourages the growth of small and medium enterprises. Meanwhile, KUR remains the primary instrument for expanding MSME financing access.

In 2026, the government is targeting KUR disbursement of Rp295 trillion with 1.37 million new debtors. The realisation of KUR throughout 2025 reached Rp270 trillion with 4.58 million debtors, comprising 2.75 million new debtors and 1.54 million graduated debtors. From this total, disbursement to the productive sector reached Rp163.9 trillion.

However, challenges persist in the field. Secretary General of the Indonesian MSME Association (Akumindo) Edy Misero assessed that KUR realisation still faces administrative obstacles, particularly regarding collateral requirements.

Although government regulations state that credit below Rp100 million does not require guarantees, field practice is said to still demand certificates or additional collateral.

“According to regulations, Rp100 million requires no guarantee, but in practice collateral is still requested,” Edy said. He also criticised banks affiliated with the Association of State-Owned Banks (Himbara) for not fully facilitating access in accordance with regulations.