Financial Authority Projects UMKM Credit Growth in Single Digits for 2026
The Financial Services Authority (OJK) projects growth in micro, small, and medium enterprise (UMKM) credit will move in single digits, approximately 7–9 per cent, in 2026. OJK is committed to continuing to drive broader and easier access to financing for UMKM.
Dian Ediana Rae, Executive Head of OJK’s Banking Supervision, said the projection for UMKM credit disbursement is in line with rising consumer confidence, national economic growth prospects, and strengthened UMKM financing policies.
She assured that the commitment to continue driving broader, easier, and more inclusive access to financing for UMKM will be one of the main pillars in maintaining financial system stability and supporting sustainable economic growth.
Dian explained that although UMKM credit disbursement as of January 2026 was recorded at Rp 1.482.9 trillion, approximately 17.33 per cent of total credit/financing disbursement, and experienced moderation of 0.53 per cent year-on-year, the fundamental sector of UMKM remains secure.
The decline in UMKM credit growth, she said, is influenced by dynamics in the global and national economy, as well as the relatively slower recovery process of the UMKM sector post-pandemic compared to the corporate sector.
“Amid near-term challenges, the banking industry remains optimistic about UMKM credit growth in 2026, projected to reach 7–9 per cent year-on-year, supported by strong consumer confidence,” Dian stated on Tuesday (10 March 2026).
The Consumer Confidence Index (IKK) in early 2026 was recorded at a positive level of 127 per cent, whilst the Consumer Price Index (CPI) was recorded at 109.75 per cent. Both indicators show an upward trend over the past year, which is deemed to reflect public optimism regarding current and future economic conditions.
Dian continued that the momentum from the seasonal effect of Eid celebrations is also expected to drive economic growth in the first quarter of 2026, particularly for the UMKM sector through a surge in household consumption that impacts increased demand for working capital credit.
She noted that as a concrete demonstration of support for UMKM financing access, OJK has issued OJK Regulation (POJK) Number 19 of 2025 on Ease of Access to Financing for UMKM, or POJK UMKM. This regulation requires banks and non-bank financial institutions to apply principles of ease, accuracy, speed, affordability, and inclusivity, as well as to provide special financing schemes for UMKM.