OJK Chief Predicts MSME Credit Growth of 7-9%, Here Are the Drivers
The Financial Services Authority (OJK) has announced that credit disbursement to Micro, Small and Medium Enterprises (MSMEs) in 2026 is projected to grow 7-9 per cent year-on-year, in line with rising consumer confidence, national economic growth prospects, and strengthened MSME financing policies being promoted jointly by OJK and the Government.
Dian Ediana Rae, Executive Head of Banking Supervision at OJK, stated that the commitment to continue driving broader, easier and more inclusive financing access for MSMEs will be a key pillar in maintaining financial system stability and supporting sustainable economic growth.
Dian explained that whilst MSME credit disbursement in January 2026 stood at 1,482.9 trillion rupiah (approximately 17.33 per cent of total credit/financing disbursement) and experienced a moderation of 0.53 per cent year-on-year, the fundamentals of the MSME sector remain sound.
The decline in MSME credit growth stems partly from global and domestic economic dynamics and the relatively slower post-pandemic recovery of the MSME sector compared to the corporate sector, Dian noted.
Amid near-term challenges, the banking industry remains optimistic about MSME credit growth in 2026, projected to reach 7-9 per cent year-on-year, supported by high consumer confidence.
OJK recorded the Consumer Confidence Index (IKK) at the start of 2026 at a positive level of 127.00 per cent, whilst the Consumer Price Index stood at 109.75 per cent. Both indicators show an upward trend over the past year, reflecting public optimism about current and future economic conditions.
The seasonal effect of the Lebaran festive period is also expected to drive economic growth in the first quarter of 2026, particularly for the MSME sector through increased household consumption leading to higher demand for working capital credit.
As a concrete show of support for MSME financing access, OJK has issued Financial Services Authority Regulation Number 19 of 2025 on Ease of Access to Financing for MSMEs (POJK UMKM). This regulation requires banks and non-bank financial institutions to apply principles of ease, appropriateness, speed, affordability and inclusivity, and to provide special financing schemes for MSMEs.
OJK has also formally established the Department of Regulation and Development of MSMEs and Islamic Finance as an institutional commitment to support the Government in advancing the MSME sector through strategies including developing financing business models, optimising credit scoring usage, and MSME segmentation and profiling.
“OJK is currently coordinating with the banking industry regarding implementation of POJK UMKM in bank business plans,” Dian said.
Additionally, OJK fully supports Government programmes, including the target for disbursing People’s Business Credit (KUR) and other credit programmes in 2026 reaching 308.41 trillion rupiah.
This support is realised through active participation in drafting the Coordinating Minister for Economic Affairs regulation on KUR as well as conducting oversight of financial services institutions distributing KUR, including guarantee and credit insurance institutions supporting the KUR programme.
Going forward, Dian emphasised that a conducive ecosystem for MSME development needs to be built through strengthening entrepreneurship, mentoring activities, opening access to offtakers, and identifying MSME sectors with development potential.
OJK will also continue to strengthen coordination with relevant Ministries and Institutions to realise synergy across programmes supporting the MSME development ecosystem in a sustainable manner.
With national economic growth in 2025 recorded at 5.11 per cent, higher than the previous year, and a target of 6 per cent economic growth in 2026, OJK believes the MSME sector has bright prospects to continue developing and making a greater contribution to the national economy.