Disbursement of MSMEs Credit Still Dominated by Wholesale and Retail Sector in February 2022

Based on Bank Indonesia (BI) data, the position of micro, small, and medium enterprise (MSME) credit grew by 1.36% to Rp1.23 quadrillion in February 2022 compared to the previous month (month-to-month/m-to-m).

Compared to February 2021, the position of MSME credit grew by 14.23% (year-on-year/yoy). Of this MSME credit value, the largest disbursement flowed to the wholesale and retail trade, repair of motor vehicles and motorcycles sector, reaching Rp607.83 trillion in February 2022. This figure accounts for almost half of the total credit (49.22%).

The next largest disbursement of MSME credit was to the agriculture, forestry, and fisheries sector, amounting to Rp186.7 trillion (15.12%). This was followed by the manufacturing industry at Rp127.44 trillion (10.32%), other services at Rp61.49 trillion (4.98%), and accommodation and food service activities at Rp59.73 trillion (4.84%).

There was also the construction sector with credit valued at Rp54.09 trillion (4.38%), followed by the transportation and warehousing sector at Rp36.71 trillion, the corporate services sector at Rp30.4 trillion (2.46%), and the real estate and financial and communication services sectors at Rp19.26 trillion (1.56%) and Rp12.74 trillion (1.03%) respectively.

Meanwhile, the position of MSME credit flowing to other sectors reached Rp38.41 trillion or 3.1% of the total credit.

Of these 10 sectors, agricultural credit recorded the highest growth at 30% (yoy) as of February this year. This was followed by accommodation and food service activities at 16.15% (yoy), and the wholesale and retail trade sector grew by 16% (yoy).

Meanwhile, MSME credit to the financial and communication services sector shrank by 16.62%, and the real estate sector also fell by 6.5% (yoy).