OJK prepares MSME financing based on regional economic potential

Jakarta (ANTARA) – The Financial Services Authority (OJK) is preparing to strengthen the financing ecosystem for micro, small and medium-sized enterprises (MSMEs) by mapping regional economic potential, so that lending is better targeted and sustainable.

OJK’s Chief Executive for Banking Supervision, Dian Ediana Rae, said the mapping would be carried out through regional economic studies to identify promising sectors and MSME businesses that could contribute to their development.

“Our concern going forward is no longer quantity; it is quality,” Dian said at the 12th National Seminar and Congress of Perbarindo in Jakarta on Monday.

According to Dian, OJK’s regional offices will work with commercial banks and rural banks (BPRs) to identify financing opportunities, including for MSMEs that have not yet gained access to credit.

“On that basis, we will work with all banks and all BPRs in each of our offices to ensure that lending is more sustainable,” Dian said.

Alongside economic mapping, OJK is preparing to strengthen the MSME ecosystem by coordinating with ministries, agencies and banks to provide business mentoring, technical assistance and support with market access.

The mentoring will cover efforts to build business owners’ capacity and connect MSMEs with buyers for their products, or off-takers.

Dian stressed that MSME development could not rely on financing alone, but also required stronger human resources and business governance, digitalisation and broader market access.

OJK has begun a number of supporting measures, including monitoring the implementation of OJK Regulation No. 19 of 2025 on facilitating access to financing for MSMEs and preparing guidance for its implementation.

Dian said OJK had also begun discussing the use of credit scoring, drafting guidance on how Islamic banking’s social functions could support MSMEs that do not meet financing requirements, and mapping the financing ecosystem with stakeholders.

At the same time, OJK is developing an integrated MSME Financing Information System, improving its financing dashboard and preparing a methodology for an MSME financing index to strengthen data availability.

As part of these efforts, OJK launched its MSME Financing Performance Progress Report for the first half of 2026 in early October to support the development of data-based financing policies and strategies.

According to figures presented by Dian, total MSME financing across all financial services sectors reached Rp1,956 trillion in August 2026, up 3.36 per cent year on year. Banking was the largest source, accounting for 82.78 per cent.

For comparison, an official OJK report published on 7 October 2026 put total MSME financing at Rp1,949 trillion in July 2026, up 3.09 per cent year on year, with banks accounting for 82.62 per cent.

Bank lending to MSMEs reached Rp1,529.38 trillion in August 2026, equivalent to 16.66 per cent of total bank lending.

The figure represented annual growth of 2.32 per cent, while the non-performing loan (NPL) ratio stood at 4.53 per cent.

This was reflected in MSME loans or financing accounting for more than 50 per cent of total lending or financing at rural banks (BPRs) and Islamic rural banks (BPRSs) in August 2026.

Dian also said lending and financing by the BPR-BPRS industry totalled Rp179.48 trillion, up 3.7 per cent, while capital adequacy ratios stood at 28.5 per cent for BPRs and 17.31 per cent for BPRSs.

By strengthening an ecosystem that is more integrated between national and regional levels, OJK hopes to increase MSME lending while improving its quality and reducing the risk of problem financing.

“We are very confident that the BPR and BPRS industries can play a major and strategic role in empowering MSMEs and driving regional economies,” Dian said.