Misbakhun Affirms P2SK Law Revision as 'Second Life' for MSMEs

The revision of Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (UU P2SK) was officially ratified by the Indonesian House of Representatives (DPR RI) during a Plenary Session on 4 June 2026. The revision also regulates the handling of non-performing loans for Micro, Small, and Medium Enterprises (MSMEs).

Chairman of Commission XI of the DPR RI, Mukhamad Misbakhun, affirmed that the revision of the Financial Sector Development and Strengthening Law (UU P2SK) provides greater opportunities for MSME players to recover and re-enter the formal financial ecosystem.

According to Misbakhun, many MSME players who are actually productive have lost access to capital due to old non-performing loans recorded in the Financial Information Service System (SLIK) of the Financial Services Authority (OJK).

“In the field, we often find traders, fishermen, farmers, or small business owners whose businesses are still running but cannot obtain financing simply because of unresolved old arrears,” Misbakhun said in a written statement in Jakarta on Monday (15/6/2026).

He assessed that this condition should not be allowed to persist as it could push MSME players to seek alternative funding sources with higher costs and greater risks.

Misbakhun explained that one of the important breakthroughs in the P2SK Law revision is the expanded legal basis for writing off non-performing MSME loans, which is no longer limited to state-owned banks but also includes Regional Development Banks (BPD) and non-bank financial institutions owned by regional governments.

According to him, this expansion of authority is crucial because the main objective of this policy is not merely to erase debt, but to give productive MSMEs the opportunity to develop their businesses again in a healthy and sustainable manner.

“What we are saving is not just the figure of non-performing loans, but the opportunity for people to return to work, do business, and build their enterprises,” he stated.

On the other hand, Misbakhun requested that the OJK immediately prepare clear and easily executable implementing regulations so that the benefits of the P2SK Law revision can be felt by the public promptly.

According to him, the benefits of the P2SK Law revision will be largely determined by the speed of its implementation on the ground.

“Do not let the spirit of the law be good, but the public still faces difficulties because the procedures are convoluted,” he said.