In line with OJK’s urge for fintech peer-to-peer lenders to increase lending outside Java, many alternative lenders have adopted varied strategies to expand their geographic reach. For example, fintech Danamas plans to increase its non-Java region lending from US$
The government has allocated a budget of US$6.7 billion (IDR95.13 trillion) for the MSME sector through the National Economic Recovery (“PEN”) program this year. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the current realisation is 64.8%, reaching 32.72
More than 50% of Indonesia’s micro and small businesses are owned by women. However, many of them were forced to close their businesses due to lack of capital during the Covid-19 pandemic. Minister of Cooperatives and Small and Medium Enterprises
OJK noted that the total disbursement of loans restructured by banks in July 2021, showed a drop to US$ 54.6 billion (IDR 778.9 trillion). However, they highlighted the risk of non-performing loans (NPLs) in the banking sector. The July NPL
The Financial Services Authority (OJK) reported that the realization of bank credit in July slowed down, despite its 0.5% year-on-year growth. OJK chairman, Wimboh Santoso, mentioned that the private commercial banks’ lending is contracting at 2.62% year-on-year, and 4.5% year-to-date.
The government has increased the budget for the People’s Business Credit (KUR) program this year from US$17.5 billion (IDR 253 trillion) to US$20 billion (IDR 285 trillion). Coordinating Minister for Economic Affairs, Airlangga Hartarto, mentioned that the decision was part
Since the pandemic, 15.3 million MSMEs have entered the digital ecosystem. However, the technology companies face several key challenges in targeting the MSME sector, such as loose supply chains for the FMCG sector, MSME credit gap, and storage capability. Nevertheless,
President Joko Widodo urges banks to allocate 30% of total lending to the MSME sector by 2024. Currently, average loan disbursements to MSMEs is 18% on an annual basis. The targeted 30% figure is aggregated at a national level, and
Bank Indonesia (BI) issues new banking rules to make it easier for banks to meet mandatory MSME or business lending targets. Under this new regulation, banks are required to allocate a minimum 20% of total lending to the MSME sector
President Joko Widodo’s three-part approach includes industrial downstreaming, digitising MSMEs, and the green economy. Jokowi said that some of the downstream results are already observable. Indonesia’s steel exports have reached US$ 10.5 billion during the first half of 2021. Other
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