Bank Credit Ratio for MSMEs Remains Around 21% as of March 2022

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Dzulfiqar Fathur Rahman 17/06/2022 16:40 WIB

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According to Bank Indonesia, the ratio of credit channeled to MSMEs to total banking credit reached 21.17% in March 2022.

Ratio of UMKM Credit to Total Banking Credit (Nov 2021–Mar 2022)

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Bank Credit Ratio for MSMEs Remains Around 21% as of March 2022

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Ratio of UMKM Credit to Total Banking Credit (Nov 2021–Mar 2022)

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According to a report by Bank Indonesia (BI), the ratio of credit channeled to micro, small, and medium enterprises (MSMEs) to total banking credit remained at 21.17% in March 2022.

This ratio is slightly lower than the previous month and has not moved significantly since the beginning of the year, as shown in the graph.

Previously, the government had targeted the ratio of banking credit for MSMEs to reach 30% within the next two years.

“The portion of credit to MSMEs is currently only around 20 percent. Therefore, I request that by 2024, this portion can reach 30 percent," said President Jokowi earlier this year, as reported by the Indonesia.go.id portal (January 29, 2022).

"We cannot rely on natural growth. This must be implemented with breakthroughs from now on and seriously,” Jokowi continued.

The 30% target is not imposed on each bank but is a national banking aggregate.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Bank Credit Ratio for MSMEs Remains Around 21% as of March 2022

Bank Credit Ratio for MSMEs Remains Around 21% as of March 2022

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Bank Credit Ratio for MSMEs Remains Around 21% as of March 2022

Bank Credit Ratio for MSMEs Remains Around 21% as of March 2022

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