Government Disburses Rp 65 Trillion in Financing to 14.9 Million MSMEs

The Indonesian government, through the Government Investment Centre (PIP), has disbursed Rp 65 trillion in financing to 14.9 million micro, small and medium enterprises (MSMEs) since 2017, according to Finance Minister Purbaya Yudhi Sadewa. Speaking at the opening of a micro-enterprise market in Yogyakarta, Purbaya highlighted the critical importance of capital access for strengthening the people’s economy, noting that Indonesia is home to approximately 66.5 million MSMEs. More than 67 per cent of these are micro-enterprises, which contribute over 60 per cent of the country’s gross domestic product and absorb nearly 117 million workers. Purbaya acknowledged that while the MSME sector is a major economic contributor, micro and ultra-micro enterprises are the most vulnerable to shocks such as rising raw material prices, falling demand and distribution disruptions. To address this, the government has reduced the interest rate on micro-enterprise loans from 22.5 per cent to 8 per cent. He also noted that Indonesia’s economy grew by 5.61 per cent in the first quarter of 2026, the highest since 2014, with Yogyakarta’s economy expanding by 5.8 per cent, and stressed that the 2026 state budget is directed towards supporting eight national priorities, including MSME empowerment.