OJK to establish department focused on MSME development

Indonesia’s Financial Services Authority (OJK) will create a department responsible for the development of micro, small and medium-sized enterprises (MSMEs), commissioner Dian Ediana Rae said on 19 October 2026. The regulator is also preparing a sustainable ecosystem for these businesses.

Speaking at Perbarindo’s national seminar and 12th national congress, Dian said coordination had already taken place with the Ministry of Cooperatives, the Ministry of MSMEs and other ministries and agencies. Support would span business mentoring, arrangements with buyers and access to markets.

OJK’s nationwide office network, conventional rural banks (BPR) and Islamic rural banks (BPRS) would participate in the effort. Dian said financing MSMEs was a statutory responsibility of BPR.

He suggested that better coordination, more comprehensive assessments and improvements to the ecosystem could expand lending. He also expressed hope that non-performing loan levels would fall. Lending growth through July 2026 stood at 3.12 per cent year on year for BPR and 6.23 per cent for BPRS.

Dian said OJK was tracking the implementation of Regulation No. 19 of 2025, which covers easier financing access for MSMEs. Other work includes preparing financing-access guidelines, opening discussions on credit scoring and drafting guidance on Islamic banking’s social function for businesses unable to obtain bank financing.

The regulator is also working with stakeholders to map the MSME ecosystem. Its data initiatives include an integrated system for tracking MSME financing, refinements to a financing dashboard, a methodology for a financing index and regular reports.