Indonesia’s financial regulator is calling for stronger credit growth to support the country’s long-term economic ambitions. With bank lending rising modestly in recent months, the OJK emphasizes that double-digit expansion—especially in productive sectors—is essential to maintain a consistent 5% GDP growth rate. A coordinated push involving public funds, regulatory reform, and targeted support for MSMEs is now underway.
Key Facts & Background:
- OJK (Financial Services Authority) asserts that credit growth must reach double digits to sustain 5% national economic growth.
- As of August 2025, bank credit grew 7.56% year-on-year (YoY), up from 7.03% in July 2025.
- Productive sector lending is seen as a key driver of economic activity.
- On September 12, 2025, the government injected Rp200 trillion into five Himbara banks via Bank Indonesia:
- BRI, BNI, Bank Mandiri: Rp55 trillion each
- BTN: Rp25 trillion
- Bank Syariah Indonesia: Rp10 trillion
- Komisi XI DPR RI recommended that these funds be directed toward productive credit, including MSME financing.
- OJK issued POJK No. 19/2025 to expand MSME access to financing:
- Encourages banks and non-bank financial institutions (LKNB) to offer tailored financial products
- Supports micro, ultra-micro, small, and medium enterprises with simplified procedures and inclusive terms
- Promotes use of alternative credit scoring and acceptance of non-traditional collateral
- Coordination between OJK and the Ministry of Finance is ongoing to optimize MSME credit distribution.
Strategic Insights:
The OJK’s push for double-digit credit growth reflects a strategic understanding of the link between financial intermediation and macroeconomic performance. In emerging economies like Indonesia, bank lending—particularly to productive sectors such as manufacturing, agriculture, and MSMEs—serves as a catalyst for job creation, investment, and innovation. Without robust credit expansion, economic growth risks stagnation, especially amid global headwinds and domestic structural challenges.
The Rp200 trillion liquidity injection into Himbara banks is a timely intervention, but its impact hinges on effective channeling toward real-sector financing. The alignment with POJK 19/2025, which promotes inclusive and adaptive MSME financing, creates a policy synergy that could unlock new growth engines. By simplifying access, recognizing intangible assets, and leveraging digital tools, the regulation aims to dismantle long-standing barriers in MSME credit markets.
However, achieving double-digit credit growth requires more than liquidity and regulation—it demands confidence. Banks must be assured of creditworthiness, while borrowers need clarity, support, and financial literacy. Strengthening credit infrastructure, improving risk assessment, and fostering public-private collaboration will be critical to bridging this gap.
In the long term, sustained credit growth can enhance Indonesia’s economic resilience, reduce inequality, and accelerate structural transformation. The challenge lies in balancing expansion with prudence—ensuring that credit is not only accessible but also productive and sustainable. With the right mix of policy, innovation, and execution, Indonesia’s financial sector can become a powerful engine for inclusive and enduring growth.