Banking - OJK Predicts MSME credit will increase by 9% yoy in 2026

Banking - OJK Predicts MSME credit will increase by 9% yoy in 2026 The Financial Services Authority (OJK) projects that the distribution of credit to micro, small, and medium enterprises (MSMEs) will grow in the range of 7%-9% yoy by 2026. This projection is supported by increasing consumer confidence, the prospects for national economic growth, and the strengthening of MSME financing policies driven by the government and regulators. The Executive Head of Banking Supervision at OJK, Dian Ediana Rae, stated that expanding access to financing for MSMEs is one of the main focuses of the authority to maintain the stability of the financial system while also supporting economic growth. "The commitment to promote broader, easier, and more inclusive financing access for MSMEs will continue to be strengthened," said Dian. On the regulatory side, the OJK has issued OJK Regulation (POJK) Number 19 of 2025 concerning Ease of Access to Financing for MSMEs. This regulation requires banks and non-bank financial institutions to provide financing schemes that are easier, faster, cheaper, and more inclusive for MSME actors. In the future, the OJK assesses that the development of MSMEs does not only depend on financing but also on strengthening the business ecosystem. This includes enhancing entrepreneurship, business mentoring, expanding market access thru off-takers, and identifying MSME sectors with the potential for faster growth. With national economic growth in 2025 reaching 5.11% and the government's target of 6% in 2026, the OJK views the MSME sector as still having quite promising prospects, although global challenges still need to be monitored. (Source : Kontan)