New MSME Credit at 18.42 Per Cent, OJK Urges Role of Guarantee Industry
JAKARTA, KOMPAS.com - The Financial Services Authority (OJK) has spotlighted the persistently low share of credit for micro, small, and medium enterprises (MSMEs). Yet, MSMEs make a substantial contribution to the national economy.
According to OJK data, as of December 2025, the portion of credit to MSMEs from all financial services stood at only 18.42 per cent, or Rp 1,809.33 trillion out of total credit amounting to Rp 9,822.19 trillion.
Asep Iskandar, Executive Director of Guarantee Supervision, Pension Funds, and Special Supervision at OJK, stated that the low portion of MSME credit is influenced by several structural constraints that prevent the sector from being fully reached by financial services.
In his view, MSMEs’ limitations in accessing funding sources are partly due to inadequate collateral.
Many MSME actors still lack sufficient guarantees to meet credit requirements.
This is compounded by administrative barriers, such as business legality and documentation, which often hinder credit applications.
This is regrettable because MSMEs contribute 60 per cent to the national economy’s gross domestic product (GDP). The sector also absorbs up to 97 per cent of the workforce in Indonesia.
“Given this substantial contribution, we must all contribute effectively to the MSME industry, both from all actors and from the regulator or OJK side,” he said during the webinar on Strengthening the MSME Credit Guarantee Ecosystem for Accelerating National Economic Growth, on Thursday (16/4/2026).
Asep revealed that the portion of MSME financing can still be increased in the future.
However, it requires involvement from various parties, including the government, OJK, the financial services sector, and the Regional Financial Access Acceleration Team (TPAKD) in 38 provinces.
In this context, the guarantee industry is seen as a key instrument to drive increased access to MSME financing.
The role of guarantees can address the challenge of limited collateral, which has long been the main obstacle for MSMEs in accessing credit.
Through guarantee schemes, the risk of default can be partially transferred to guarantee companies, thereby boosting the confidence of financial institutions in disbursing financing.
“The role of guarantee companies in supporting MSMEs has three aspects: it can increase the attractiveness of MSMEs to the financing sector, provide access to financing institutions where, with the help of guarantee companies, access is further opened or enhanced. Additionally, it builds capacity in governance and risk management in the MSME sector,” he explained.