OJK reveals factors behind the slowdown in MSME lending over the past year

Jakarta (ANTARA) – The Financial Services Authority (OJK) has disclosed factors affecting the deceleration of credit disbursement to micro, small and medium enterprises (MSMEs) over the past year, influenced by dynamics in the global and national economies. Dian Ediana Rae, the Executive Head of Banking Supervision (KEPB) at OJK, in Jakarta on Tuesday, noted changes in consumer spending patterns as a result of purchasing-power pressures on the lower-middle class. Additionally, MSME credit risk is considered relatively higher than in other segments. Dian also noted that the recovery of MSMEs from the Covid-19 pandemic is relatively slower than that of corporations. ‘Credit disbursement to MSMEs as of January 2026 actually reached Rp1,482.99 trillion. There is indeed a trend of financing growth that has tended to slow over the past year,’ he said. He added that various government programs and policies are expected to spur credit disbursement to MSME borrowers with good business prospects to expand. Regarding government programs and policies, OJK supports lending to small businesses or Kredit Usaha Rakyat (KUR) and other programme loans that are generally aimed at MSMEs. Some roles of OJK in developing MSMEs include supporting the drafting of the Coordinating Minister for Economic Affairs Regulation on Kredit Usaha Rakyat (KUR) and programme loans.