OJK Increases the Potential Distribution of UMKM Financing in the 2025 RBB

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is finalizing the Draft Regulation of OJK (Rancangan Peraturan OJK – “RPOJK”) on Access to Financing for Micro-, Small- and Medium-Scale Enterprises (Usaha Mikro, Kecil dan Menengah – “UMKM”). The Chief Executive of Banking Supervision of OJK, Dian Ediana Rae, stated that they are preparing a special financing scheme so that Banks and Non-Bank Financial Institutions (Lembaga Keuangan Non-Bank – “LKNB”) can adapt to the characteristics of UMKM businesses.

“We prepare the rules of the game along with the technical support that will facilitate evaluations in each Bank, thus paralleling the UMKM growth. We will discuss the more complete formulation later during the Bank Business Plan (Rencana Bisnis Bank/RBB) discussions, overall, we convey that the line of thinking from this policy will assist the banking sector not to hesitate in engaging in activities related to government programs,” Dian explained to Hukumonline.

Furthermore, the RPOJK that has been drafted since the middle of last year can stimulate the people's economy more quickly, in accordance with the mandate of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“P2SK Law”). At the same time, banks and LKNB can collaborate to provide easier access to financing for UMKM in a more sustainable manner.

"We hope that this regulation will certainly be issued this year, after consulting with Indonesia’s House of Representatives (DPR RI)," Dian concluded.