OJK: Bali Banks Increase Lending to MSMEs

Denpasar, Bali (ANTARA) - The Financial Services Authority (OJK) has observed that banks in Bali are increasing credit distribution to micro, small, and medium enterprise (MSME) debtors to support regional performance and the economy. “As much as 51.26 per cent of credit distribution up to April 2026 in Bali was channelled to MSME debtors,” said Head of OJK Bali Parjiman in Denpasar, Bali, on Monday. He explained that lending by commercial banks and rural banks (BPR) in Bali during the January-April 2026 period reached Rp147.64 trillion, an increase of 9.14 per cent compared to the same period in 2025, which was Rp135.28 trillion. More than half of this credit realisation was absorbed by MSMEs, with an increase of 5.23 per cent compared to the same period in 2025. The MSME lending was dominated by the micro business segment with a share of 41.84 per cent and the small business segment at 37.99 per cent. The regulator also explained that in terms of usage type, the credit growth was driven by investment loans, which grew by Rp6.11 trillion. Parjiman assessed that the increase in investment segment lending demonstrates the banking sector’s contribution to supporting business expansion financing to drive long-term economic growth in Bali Province. Meanwhile, in terms of nominal growth, the accommodation and food and beverage provision sector recorded the largest addition at Rp2.10 trillion. “This significant growth reflects Bali’s strengthening tourism sector and drives increased financing needs,” he said. Meanwhile, third-party funds (DPK) continued to grow positively by 6.64 per cent to reach Rp207.54 trillion, compared to Rp194.63 trillion in the same period the previous year. Banking credit quality in Bali remained sound, with a non-performing loan (NPL) ratio of 2.60 per cent, lower than the 3.21 per cent recorded in the same position the previous year. However, the loan-to-deposit ratio (LDR) remained stagnant, showing no significant movement at 58.30 per cent, compared to 58.43 per cent in April 2025. The LDR achievement in April 2026 was still below the ideal regulatory range of 78 to 92 per cent.