Government Enhances Credit Disbursement Quality to Boost MSME Growth

Jakarta (ANTARA) - Coordinating Minister for Community Empowerment, Abdul Muhaimin Iskandar, stated that the government is continuously enhancing the quality of credit disbursement so that it not only achieves numerical absorption but also impacts business growth and job creation. “People’s Business Credit (KUR) and general credit for micro, small, and medium enterprises (MSMEs) have shown very positive development, and the Minister for Cooperatives and SMEs is working hard to optimise KUR and various other credits, ensuring they truly benefit MSME actors directly,” said Coordinating Minister Muhaimin Iskandar in Jakarta on Tuesday. His side acknowledges that several challenges remain, including the risk of non-performing loans and suboptimal market access for MSME actors. Therefore, the government will continue to prepare more conducive market conditions so that MSME products can be well absorbed. “We do not want MSME actors to be trapped in non-performing loans. For that reason, besides financing, we must also ensure that markets are available and access is widely open,” said Muhaimin Iskandar. Meanwhile, Minister for Cooperatives and SMEs Maman Abdurrahman explained that the trend of bank credit allocation to the MSME sector has experienced a significant increase over the past decade. In 2025, the total credit disbursed to the MSME sector reached approximately Rp1,487 trillion, with KUR realisation amounting to Rp270 trillion. Nevertheless, he emphasised that the success of financing is not only measured by the amount of credit disbursed but also by the business actors’ ability to market their products. “Credit allocation to the MSME sector cannot merely be viewed from its quantity, because there are certain conditions when we assist MSMEs in terms of financing; they can produce goods, but the goods cannot be sold to the market. The impact is non-performing loans,” said Maman Abdurrahman.