Credit allocation for Micro, Small, and Medium Enterprises (MSMEs) until the end of July 2017 reached Rp 884.63 trillion, or 19.63 percent of the total banking funds disbursed, amounting to Rp 4,507 trillion. The value of business credit for small businesses remains very minimal, at only 6.8 percent of the national Gross Domestic Product (GDP) which reached Rp 12,999 trillion.
Based on Bank Indonesia data, the Non-Performing Loan (NPL) ratio for MSME credit in July 2017 reached 4.64 percent. This figure is above the average banking NPL of 3 percent. For micro business credit NPLs, it was 2.54 percent; for small business credit, 4.79 percent; and for medium business credit, 5.6 percent.
According to classification, 46.49 percent of MSME credit was for medium businesses, 30.24 percent for small businesses, and the remaining 23.27 percent for micro businesses. According to usage, 73.74 percent of MSME credit was for working capital loans, with the remainder allocated for investment loans.