OJK says MSME development to take more systemic approach
Jakarta (ANTARA) - Chief Executive of Banking Supervision at the Financial Services Authority (OJK) Dian Ediana Rae said that the development of micro, small and medium enterprises (MSMEs) is now being carried out with a more systemic approach.
“We are now taking a more systematic, more systemic approach to how we develop MSMEs,” he said in a doorstop following the UMKM Finance Summit 2026 agenda in Jakarta on Tuesday.
One form of support provided by the OJK is the issuance of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK), among other things to accelerate credit growth to MSMEs.
Based on the National Medium-Term Development Plan (RPJMN), the target for the ratio of MSME credit to total bank credit in 2029 is 25 percent. At present, total bank credit stands at Rp9,019 trillion, of which Rp7,506 trillion or 83.3 percent is allocated to non-MSMEs, while MSMEs receive only Rp1,513 trillion or 16.7 percent.
Following the issuance of OJK Regulation Number 19 of 2025 on Ease of Access to Financing for MSMEs, and the establishment of a new directorate within the OJK dealing with MSME matters, bank credit growth to MSMEs is expected to increase further.
According to OJK data, MSME credit grew by 0.60 percent year on year (yoy) in May 2026.
The growth in MSME credit was contributed by micro and medium enterprise credit, which grew by 0.64 percent (yoy) and 1.84 percent (yoy) respectively, although small enterprise credit contracted by 0.24 percent (yoy).
“Although the growth is only slight, it is already much better compared with the beginning of this year, which was still negative. Now it has started to turn positive. We hope the increase will continue in the coming months,” said Dian.
Therefore, through the UMKM Finance Summit 2026, the OJK hopes to establish a working group to monitor over time the improvement in financing quality and the development of the MSME ecosystem. This will be done in collaboration with various agencies, including the Ministry of Finance, the Coordinating Ministry for Economic Affairs, Bank Indonesia, and the Ministry of MSMEs.
“Our concern with MSMEs is not only about providing financing, but how our MSMEs can then graduate and grow, so that the contribution of the very large number of MSMEs can truly be realised in the reality of our economic life,” he added.