Leather Bag Artisans Amidst the Dynamics of MSME Credit

An artisan completes a bag order at the Biyantie leather bag MSME workshop in the Kalibata area of Jakarta on Monday (29/6/2026). The quality of credit for micro, small, and medium enterprises (MSMEs) is once again facing pressure. Bank Indonesia (BI) recorded that the MSME non-performing loan (NPL) ratio increased to 4.68% in May 2026, up from 4.62% in April 2026. On the other hand, MSME loan distribution has begun to show signs of improvement. As of May 2026, MSME credit grew by 0.6% year-on-year (yoy), higher than the 0.2% yoy growth recorded in April.