Dicky Kartikoyono Proposes UMKM Credit Securitisation in OJK Board Selection

Dicky Kartikoyono, candidate for OJK Financial Services Authority Board of Commissioners, has advocated for securitisation of UMKM credit as a means to equalise financing sources. This was stated by Dicky during the fit and proper test for the OJK Board position today at Commission XI of the Indonesian House of Representatives. Dicky currently serves as Head of the Payment Systems Policy Department at Bank Indonesia.

He previously underwent a fit and proper test for the position of Deputy Governor of Bank Indonesia in July 2025 and January 2026. This examination marks the third fit and proper test he has undertaken in the past year.

“Currently, securitisation seems very feasible with good data, credit ratings and payment history. So we can securitise good UMKM credit portfolios,” said Dicky in Jakarta on Wednesday, 11 March 2026.

He further highlighted state-owned banks within Himbara (the Association of State-Owned Banks) which typically have targets for UMKM credit distribution, whilst non-state banks still face challenges in meeting such quotas.

Under the proposed scheme, UMKM credit portfolios that have exceeded targets at state-owned banks could be securitised into asset-backed securities, which could then be purchased by non-state banks.

“When I was previously a supervisor, there were money market securities backed by small business credit. Those usually focused on retail lending would, upon reaching certain thresholds, have their excess amounts securitised or sold to corporate-focused banks or wholesale-oriented banks,” said Dicky.

He emphasised that financial system stability must optimally contribute to economic growth. This, he argued, is insufficient if supported only by credit growth in the range of 8-10 per cent.

“It must be significantly higher (credit growth). How we then seek to address this, we are offering a vision and several strategic policy directions,” said Dicky.

He stressed the importance of optimising credit distribution and encouraging capital market financing. In this regard, credit distribution must be supported by demand-side factors and not merely supply-side considerations.