Indonesia's Financial Services Authority plans to establish a working group with government ministries, agencies and the financial services industry to coordinate policies and improve the effectiveness of financing for micro, small and medium-sized enterprises. It also signed a memorandum of understanding with the Ministry of MSMEs covering policy coordination, government credit programs, business readiness, market and supply-chain access, digitalization and inclusive financing. Cross-sector MSME financing reached IDR 1,948.72 trillion in June 2026, up 2.18% from a year earlier. Banking accounted for 82.44% of the total, while the nonbank PVML sector represented 17.50% and capital markets 0.06%. The authority is implementing its 2025 MSME financing rule to simplify access, support financing based on cash flow, transactions and business ecosystems rather than additional collateral alone, and enable models including supply-chain financing and technology-based processes. The planned working group will map policies, identify opportunities for coordination and address regulatory barriers. The authority is also developing an integrated MSME financing information system, enhancing its financing dashboard and preparing an MSME financing index and periodic reports.
OJK2026-08-11
Indonesia's Financial Services Authority plans cross-agency MSME financing working group as funding reaches IDR 1,948.72 trillion
Indonesia's Financial Services Authority plans a cross-agency working group to coordinate MSME financing policies and address regulatory barriers. Cross-sector MSME financing reached IDR 1,948.72 trillion in June 2026, up 2.18% year over year. The authority also signed a cooperation agreement with the Ministry of MSMEs and is developing an integrated financing data system.