OJK Sets Ambitious MSME Target in Guarantee Industry

Roadmap for MSME Financing Expansion

The Financial Services Authority (OJK) is confident that its target of achieving 90% MSME portfolio allocation in the guarantee industry by 2028 is attainable. As of October 2025, MSMEs already constitute 70.55% of the total guarantee portfolio, with an average annual growth rate of around 5%.

Key Drivers of Growth

The OJK identifies several key factors supporting this target: the guarantee industry's support for government programs like Kredit Usaha Rakyat (KUR), and the implementation of POJK 11/2025 regarding guarantee institutions' operations, particularly related to capital strengthening and gearing ratio improvement. These measures are expected to significantly enhance the industry's guarantee capacity.

Challenges Ahead

Despite the optimism, OJK acknowledges challenges such as the need for capital strengthening, particularly for regional guarantee companies (Jamkrida), as MSME credit risks increase. To address these, the OJK continues to promote capacity building and good governance in the industry to ensure sustainable access to MSME financing.

Industry Performance

As of October 2025, the guarantee industry's assets grew by 3.17% year-on-year (YoY) to Rp48.02 trillion. However, guarantee service revenue decreased by 10.50% YoY to Rp6.55 trillion, and guarantee claims dropped by 15.73% YoY to Rp6.01 trillion.