Micro, Small, and Medium Enterprise (UMKM) Credit Reaches Almost Rp1.3 Quadrillion by June 2022

The outstanding debit balance of Micro, Small, and Medium Enterprises (MSMEs) credit reached Rp1.29 quadrillion in June 2022. This figure increased by 6.21% compared to the December 2021 position, which was only Rp1.22 quadrillion.

The debit balance is the remaining principal loan amount that borrowers must repay. The largest MSME credit debit balance is in the small business credit class, reaching Rp481.84 trillion (37.08%). This is followed by micro business credit at Rp446.64 trillion (34.37%), and medium business credit at Rp370.87 trillion (28.54%).

By usage type, Rp971.4 trillion (74.76%) was allocated for working capital credit and Rp327.94 trillion (25.24%) for investment credit.

The value of MSME credit for the micro business class until the end of June 2022 grew by 4.55%, and for small businesses it increased by 4.81% from the end of last year. Meanwhile, for the medium business sector, the credit value decreased by 0.78%.

Up to the first half of 2022, the total value of MSME credit reached 7.12% of the national Gross Domestic Product (GDP), and 20.83% of total banking credit.

The largest MSME credit flowed to the wholesale and retail trade sector, reaching Rp636.96 trillion (49.02%). This is followed by the agriculture sector at Rp191.9 trillion (14.77%), and the manufacturing sector at Rp131.2 trillion (10.1%).