SME Loan Disbursements Grow 18.2% YoY in July 2022

Disbursement of bank credit to the micro, small, and medium enterprise (MSME) sector reached Rp1.220 trillion in July 2022. This figure grew by 18.2% year-on-year (yoy), higher than the previous month's growth of 17.6% (yoy) in June 2022.

According to business scale, micro-scale MSME credit grew by 115.7% (yoy) in July 2022 to Rp420.7 trillion, higher than the previous month's growth of 113.7% (yoy).

Meanwhile, credit for small-scale MSMEs also grew higher at 22.7% (yoy) in July 2022, reaching Rp464.6 trillion. In June 2022, small business credit only grew by 21.7% (yoy).

On the other hand, medium-scale MSME credit contracted by 26.65% (yoy) in July 2022 to Rp334.7 trillion. This contraction slightly decreased from the previous month's contraction of 26.71% (yoy).

According to BI (Bank Indonesia), the increase in MSME credit was also driven by both investment credit (KI) and working capital credit (KMK). KI in July 2022 grew by 2.6% (yoy), while KMK grew by 23.5% (yoy) in the same period.

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