OJK Encourages UMKM Lending Through Regional Development Banks

The Financial Services Authority (OJK) is continuing to encourage lending to micro, small, and medium enterprises (UMKM) through Regional Development Banks (BPD) in a bid to spur economic growth across various regions.

“We are now being encouraged to develop UMKM and ease their access. We are currently undertaking many overhauls related to how we will channel credit to UMKM in the future,” said Dian Ediana Rae, Chief Executive of Banking Supervision at the OJK, during the Regional Bank Summit 2026: Strategic Transformation of BPDs in Driving National Development, on Wednesday (5/8/2026).

Dian explained that to facilitate BPDs in channelling credit to UMKM, an ecosystem is needed. This ecosystem must be built with the aim of empowering the credit and ensuring it does not become a burden for the BPDs.

“Therefore, we will truly balance growth in UMKM with quality. What kind of UMKM quality is needed,” he clarified.

He also urged BPDs to seize this opportunity. BPDs can also utilise technology to ensure credit is distributed and does not become a burden.

“Of course, if dealing with retail customers like UMKM, there must also be a more efficient mechanism,” Dian stressed.

Furthermore, he explained that in channelling credit, BPDs can look at the sectors that are the strengths of those UMKM. He cited the example of Bali with its tourism and visitor development.

“But this can be done in other regions. Other regions also have advantages in tourism, advantages in certain products. This is one of the opportunities that is very large to be developed,” Dian emphasised.