The regulation is being prepared to boost credit or financing growth in the coming years.
"The draft regulation will apply to banks and non-bank institutions and is expected to ease financing access for MSMEs, enabling them to improve their business capacity," said Dian Ediana Rae, OJK Executive Head for Banking Supervision, on Sunday.
He noted that the draft regulation will ease access for MSMEs at all stages of financing from banks and non-bank institutions.
The regulation will ensure easier access to MSME financing by implementing special policies, preparing tailored financing schemes based on MSME business characteristics, and streamlining financing processes.
Furthermore, banks and non-bank institutions can collaborate to ease financing access for MSMEs.
Based on a study by Ernst and Young (EY), financing needs for MSMEs in 2026 will reach Rp4,300 trillion (around US$265.91 billion). However, only Rp1,900 trillion is currently accommodated.
MSMEs play a key role in driving Indonesia's economy. According to the Coordinating Ministry for Economic Affairs, MSMEs contributed 61 percent to GDP (Rp9,580 trillion) and 97 percent to job absorption in 2023.
The OJK reported positive growth in banking intermediation performance, supported by a well-managed risk profile.
In November 2024, credits grew by 10.79 percent year-over-year to Rp7,717 trillion.
Related news: Indonesia's OJK shuts down 3,240 illegal financial entities in 2024
Related news: OJK encourages financial services to support MSMEs financing
Translator: Martha Herlinawati, Raka Adji
Editor: Anton Santoso
Copyright © ANTARA 2025
