OJK projects UMKM credit growth of 7-9 per cent this year

Jakarta — The Financial Services Authority (OJK) has projected that credit disbursement to micro, small and medium enterprises (UMKM) in 2026 will grow 7-9 per cent year-on-year, supported by rising consumer confidence, prospects for national economic growth, and strengthened UMKM financing policies being continuously promoted by OJK and the government.

Dian Ediana Rae, Head of the Banking Supervision Executive at OJK, said in a statement in Jakarta on Tuesday that the commitment to continue encouraging wider, easier and more inclusive financing access for UMKM would be one of the main pillars in maintaining financial system stability and supporting sustainable economic growth.

Dian explained that although UMKM credit disbursement as of January 2026 stood at Rp1.482,9 trillion (approximately 17.33 per cent of total credit and financing disbursement) and experienced a moderation of 0.53 per cent year-on-year, the fundamentals of the UMKM sector remained sound.

The decline in UMKM credit growth was partly due to the impact of global and domestic economic dynamics, as well as the relatively slower recovery of the UMKM sector following the pandemic compared to the corporate sector, Dian added.

OJK recorded the Consumer Confidence Index (IKK) at the beginning of 2026 at a positive level of 127.00 per cent, whilst the Consumer Price Index stood at 109.75 per cent.

Both indicators showed an upward trend over the past year, reflecting public optimism about the current and future economic conditions.

The seasonal effect of Eid celebrations is also expected to boost economic growth in the first quarter of 2026, particularly for the UMKM sector through a spike in household consumption that would increase demand for working capital credit.