Dicky Kartikoyono Seeks to Boost UMKM Financing Through Credit Securitisation
Jakarta—Dicky Kartikoyono, a candidate member of the Financial Services Authority (OJK) Board of Commissioners, has highlighted the sluggish flow of banking credit to the small and medium-sized enterprise (UMKM) sector and proposed implementing a credit securitisation mechanism to encourage UMKM financing growth.
He outlined this proposal during his fit and proper test as a candidate for the OJK board before the XI Commission of the Indonesian House of Representatives (DPR RI) on Wednesday, 11 March 2026.
Kartikoyono, who has served since 2023 as Head of the Payment Systems Policy Department at Bank Indonesia (BI), referenced the Special Money Market Securities for Small Business Credit (SBPUKUK), an earlier instrument formerly used to securitise small business loans for trading in the money market. He suggested that such a model should be redeployed.
“When I was a supervisor previously, there was SBPUKUK. Those who typically focus on retail, once they reach a certain threshold, could securitise the remainder and sell it to corporate-oriented banks or wholesale-focused banks. This is very important,” Kartikoyono told the XI Commission on Wednesday, 11 March 2026.
He noted that current regulations impose a flat 20% UMKM credit allocation requirement for every bank. Consequently, UMKM financing is predominantly borne by banks focused on the retail segment.
“Yet UMKM is the most crucial engine of economic growth,” he added.
Beyond this, he also raised the importance of strengthening the banking sector’s intermediation function. Kartikoyono emphasised the need to cultivate credit demand, not merely ensure liquidity availability.
“Credit distribution requires both supply and demand. Supply alone without demand is insufficient,” he concluded.
On the supply side, Kartikoyono stated that efforts must be reinforced through universal banking, financing syndication, and improved utilisation of UMKM data.
“We view this as an opportunity that must be pursued,” he said.