Microfinance Institution Financing Increased by 21.68%, Reaching Rp 749.42 Billion in 2020

Based on a report by the Financial Services Authority (OJK), the amount of financing disbursed by Micro Financial Institutions (MFIs) to the public reached Rp 749.42 billion in 2020. This figure increased by 21.68% from the previous year's Rp 615.92 billion.

In detail, in 2020, financing provided by conventional MFIs reached 74.28%, or Rp 556.65 billion. Of this amount, 63.80% was from conventional PT MFIs, with financing valued at Rp 478.15 billion, and 10.47% was from conventional cooperatives, with a value of Rp 78.50 billion.

Meanwhile, financing provided by Sharia MFIs amounted to Rp 192.77 billion, or 25.72%. This comprised Sharia PT MFIs with financing valued at Rp 18.41 billion, or 2.46%, and Sharia Cooperative MFIs with financing valued at Rp 174.36 billion, or 23.27%.

From 2016 to 2020, MFI financing has continuously increased. This increase is in line with the addition of the number of customers. The OJK recorded that the number of MFI customers in 2020 was 82,461. This figure increased by 22.4% from the previous year's 67,360 customers.

For information, MFIs were established in an effort to encourage community empowerment, especially for low-to-middle-income communities and Micro, Small, and Medium Enterprises (MSMEs).