Indonesia's Financial Services Authority (OJK) used its year-end dialogue with the financial services industry to urge firms to strengthen resilience and increase their contribution to government priority programmes, including the three million homes development and renovation programme and easier access to financing for micro, small and medium-sized enterprises (MSMEs). OJK highlighted measures intended to facilitate lending within firms’ risk management and business considerations, including a lower risk weight for residential mortgages (KPR) and a mortgage asset quality assessment based solely on payment timeliness. It also reiterated that there is no OJK provision that prohibits extending credit to borrowers with non-performing quality, particularly for small nominal amounts, and stated this is not linked to information in the Financial Information Service System (SLIK). For MSMEs, OJK pointed to OJK Regulation No. 19/2025, which sets obligations for banks and non-bank financial institutions to increase MSME financing, and stressed that financial sector digitalisation should be matched by stronger cybersecurity to protect data and maintain public trust. OJK said it will supervise and monitor banks’ business plans and implementation steps related to improving MSME access to credit, and will evaluate input gathered from industry participants across the 4–5 December 2025 dialogue sessions.
OJK 2025-12-05
Indonesia's Financial Services Authority urges financial services firms to support housing and MSME programmes and signals closer monitoring of MSME financing plans
Indonesia's Financial Services Authority (OJK) urged financial firms to enhance resilience and support government initiatives, including housing development and MSME financing. Key measures include a lower risk weight for residential mortgages and a focus on payment timeliness for mortgage asset quality. OJK emphasized the importance of digitalization paired with robust cybersecurity and will oversee banks' efforts to improve MSME credit access.