The Government of Indonesia announced the extension of tax incentives for Micro, Small and Medium Enterprises (MSMEs). In addition, Bank Indonesia issued a regulation on banking obligations to fulfil credit distribution for MSMEs and low-income individuals (PBR) at least 20% this year and increase to 30% in 2024. OJK also provides support to MSMEs through a credit restructuring policy. In December alone, the restructuring of MSME loans reached Rp 256.73 trillion, or nearly 40% of the total loans restructured by banks during that period. OJK has also extended this policy to March 2023.
