OJK states that UMKM credit performance shows signs of improvement
Jakarta (ANTARA) - The Executive Head of Banking Supervision at the Financial Services Authority (OJK), Dian Ediana Rae, stated that UMKM credit performance shows signs of improvement, with positive growth recorded after a previous contraction.
In March 2026, UMKM credit stood at Rp1,498.64 trillion, reflecting an annual (year-on-year/yoy) expansion of 0.12%. This growth is better than the previous month’s contraction of 0.56% (yoy).
In an official statement in Jakarta on Wednesday, Dian noted that the quality of UMKM credit remains stable, with a non-performing loan (NPL) ratio of 4.60% amid pressures on consumer purchasing power and domestic economic dynamics.
Furthermore, Dian detailed that the UMKM credit growth was contributed by Micro Credit and Medium Credit, growing by 0.20% (yoy) and 0.90% (yoy) respectively, offsetting a decline in Small Credit of 0.49% (yoy).
The annual UMKM credit growth primarily came from the agriculture, forestry, and fisheries sector at Rp11.91 trillion (4.20%); followed by the financial and insurance activities sector at Rp8.10 trillion (65.40%); and the accommodation and food and beverage provision sector at Rp2.53 trillion (3.50%).
According to Dian, banks and UMKM actors need to develop a business ecosystem that supports optimal and sustainable utilisation of credit in line with national economic growth.
“In this regard, banks are actively providing assistance to UMKM actors to enhance productivity and market development. Meanwhile, UMKM actors are also actively improving their competencies and expanding networks and synergies among business actors,” she said.
Some strategies that banks can undertake to boost UMKM credit include a supply chain approach, digitisation of the credit process, and improving financial literacy for UMKM actors.
Dian conveyed that OJK and the government continue to strive to promote UMKM growth in order to realise inclusive and sustainable national economic growth.
One of OJK’s policies to encourage UMKM credit is the issuance of OJK Regulation (POJK) No. 19 of 2025 on Ease of Access to Financing for Micro, Small, and Medium Enterprises (POJK UMKM).
According to the authority, the issuance of this POJK UMKM is also in line with the Government’s Asta Cita to increase employment, accelerate economic equality, and eradicate poverty as priority government agendas.
With this POJK UMKM, OJK encourages banks to provide ease of access to UMKM credit that is easy, accurate, fast, affordable, and inclusive.
Furthermore, to support national economic growth, there are several government programmes designed to strengthen consumer purchasing power, including final Income Tax (PPh) incentives for UMKM and Income Tax Article 21 Borne by the Government (DTP) for workers in the tourism and labour-intensive sectors.
With these government initiatives and support from various stakeholders, these steps are expected to foster better UMKM business and credit growth compared to previous periods.